Written answers

Wednesday, 11 January 2012

Department of Public Expenditure and Reform

Departmental Contracts

8:00 pm

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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Question 260: To ask the Minister for Public Expenditure and Reform if his attention has been drawn to the fact that a number of contractors who were awarded Government contracts did not pay or only part paid moneys owed to subcontractors for works carried out; and if he will make a statement on the matter. [41174/11]

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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Question 261: To ask the Minister for Public Expenditure and Reform the action he will take to address the fact that a number of contractors who were awarded Government contracts did not pay or only part paid moneys owed to subcontractors for works carried out; and if he will make a statement on the matter. [41175/11]

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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Question 262: To ask the Minister for Public Expenditure and Reform the number of complaints received in 2009, 2010 and 2011in relation to a number of contractors who were awarded Government contracts and did not pay or only part paid moneys owed to subcontractors for works carried out; the total amount of moneys involved; and if he will make a statement on the matter. [41176/11]

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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Question 263: To ask the Minister for Public Expenditure and Reform if he will assist subcontractors who now find themselves out of pocket due to the fact that a number of contractors who were awarded Government contracts did not pay or only part paid moneys owed to them for works carried out; and if he will make a statement on the matter. [41177/11]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I propose to take Questions Nos. 260 to 263, inclusive, together.

Under a public works contract the contractual relationship is between the public body and the main contractor. A public body has no contractual ties with a subcontractor engaged by a main contractor. Any contractual relationship is exclusively a matter between the main contractor and its sub-contractor. Most private sector construction contracts operate in the same manner.

I am conscious of the difficulties being experienced by sub-contractors in this current economic climate. However the Deputy may be aware that 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 this regard, my colleague Minister of State Mr Brian Hayes has been working with Senator Quinn to develop the Construction Contracts Bill, which is now before the Dáil, into a robust piece of legislation.

The main purpose of the Bill is to help address the issue of non-payment to construction sector subcontractors who have satisfactorily completed work on construction projects. Minister Hayes is now examining the Bill and will decide how best to proceed. It is important that a solution to the problem of non-payment must not place an unnecessary regulatory or cost burden on the parties to the dispute, other parties involved in the project, or the State.

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