Seán Fleming (Laois-Offaly, Fianna Fail)
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Question 175: To ask the Minister for Public Expenditure and Reform when the Construction Contracts Bill will be introduced into Dáil Éireann; and in view of the regulatory impact assessment carried out if he will consider the non-binding adjudication, the restriction to limit the application of the Bill to figures of greater than €200,000 and the right to suspend work for non-payment must not be time restricted before the Bill is considered further; and if he will make a statement on the matter. [28705/11]

Brendan Howlin (Wexford, Labour)
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The Programme for Government contains a commitment to introduce new legislation to protect small building subcontractors that have been denied payments from bigger companies. In addition, you may be aware that the Construction Contracts Bill 2010 was introduced by Senator Feargal Quinn and passed Committee and remaining stages in the Seanad on 8 March 2011. It is now before the Dáil.

My colleague, Minister of State Mr Brian Hayes, has been working with Senator Quinn to develop the Bill into a robust piece of legislation. In this regard, Minister Hayes and Senator Quinn met relevant stakeholders and opposition spokespersons on 28 June 2011. This consultation highlighted a number of matters relating to the Bill that required further consideration. These have been taken into account now in the Regulatory Impact Assessment (RIA) on the Bill which was completed recently and published on 27 September. The Report is available on my Department's website: www.per.gov.ie/reports .

The RIA examined issues relating to payment practices in the construction sector and assessed the need for legislative intervention. It found that legislation is desirable to improve payment practices and to allow swift resolution of payment disputes by way of adjudication, allowing projects to be completed without wasting time and money in litigation. In addition, the RIA examined the main proposals to amend the Bill that were raised during the Seanad debate and subsequent consultation. It found that there were merits to considering amending the Bill in a number of respects e.g. to bring lower value contracts within its scope and to make the adjudicators award binding in payment dispute cases. It concluded that any such amendments should be formulated in such a manner that would protect the taxpayer.

In addition to the issues dealt with in the RIA, Minister Hayes has asked the relevant officials to re-examine other issues raised during the consultation, including the time limit on suspension, to see if a more effective solution can be formulated in such a manner that would protect the taxpayer. Minister Hayes will reflect on the findings of the RIA and incorporate them into the legislative proposals which will be brought to Government shortly for approval. It is essential that the solution to this issue needs to be balanced so as to avoid imposing regulatory or cost burdens on parties in dispute, the State or others.

Michael McCarthy (Cork South West, Labour)
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Question 176: To ask the Minister for Public Expenditure and Reform his views that there is scope to strengthen the Construction Contracts Bill when it comes before the Dáil Eireann; when he expects this legislation to be forthcoming; and if he will make a statement on the matter. [28717/11]

Brendan Howlin (Wexford, Labour)
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The Programme for Government contains a commitment to introduce new legislation to protect small building subcontractors that have been denied payments from bigger companies. In addition, you may be aware that the Construction Contracts Bill 2010 was introduced by Senator Feargal Quinn and passed Committee and remaining stages in the Seanad on 8 March 2011. It is now before the Dáil.

My colleague Minister of State Mr Brian Hayes has been working with Senator Quinn to develop the Bill into a robust piece of legislation. In this regard, Minister Hayes and Senator Quinn met relevant stakeholders and opposition spokespersons on 28 June 2011. This consultation highlighted a number of matters relating to the Bill that required further consideration. These have been taken into account now in the Regulatory Impact Assessment (RIA) on the Bill which was completed recently and published on 27 September. The Report is available on my Department's website: www.per.gov.ie/reports . I understand that a note on this issue was recently circulated to all Oireachtas members.

The RIA examined issues relating to payment practices in the construction sector and assessed the need for legislative intervention. It found that legislation is desirable to improve payment practices and to allow swift resolution of payment disputes by way of adjudication, allowing projects to be completed without wasting time and money in litigation. In addition, the RIA examined the main proposals to amend the Bill that were raised during the Seanad debate and subsequent consultation. It found that there were merits to considering amending the Bill in a number of respects e.g. to bring lower value contracts within its scope and to make the adjudicators award binding in payment dispute cases. It concluded that any such amendments should be formulated in such a manner that would protect the taxpayer.

In addition to the issues dealt with in the RIA, Minister Hayes has asked the relevant officials to re-examine other issues raised during the consultation, including the time limit on suspension, to see if a more effective solution can be formulated in such a manner that would protect the taxpayer. Minister Hayes will reflect on the findings of the RIA and incorporate them into the legislative proposals which will be brought to Government shortly for approval. It is essential that the solution to this issue needs to be balanced so as to avoid imposing regulatory or cost burdens on parties in dispute, the State or others.