Patrick Nulty (Dublin West, Labour)
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Question 257: To ask the Minister for Public Expenditure and Reform the current position regarding the Construction Contracts Bill; and if he will make a statement on the matter. [26621/12]

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 this regard, my colleague Minister of State Brian Hayes is working with Senator Feargal Quinn to develop the Senator's private member's Construction Contracts Bill into a robust piece of legislation. The Bill is now at Second Stage in the Dáil.

During the Second Stage reading of the Bill, Minister Hayes signalled to the House his intention to bring proposals to Government on Committee Stage amendments dealing with the following issues:

Thresholds:

In order to ensure that the legislation applies to the majority of Construction Contracts the scope of the legislation will be broadened by reducing or removing the current monetary thresholds contained in the Bill.

Adjudication:

This issue of making adjudication awards binding for both the public and private sectors is a complex issue. It is important to strike the right balance between giving this legislation the necessary enforcement provisions, whilst ensuring that the application of the legislation is equitable and the taxpayer is safeguarded.

Supplies:

Proposals are being developed to broaden the scope of the legislation to include bespoke construction supply contracts. However, as I understand it this is likely to be difficult to define in a manner that is easy to interpret.

When these and a number of other technical issues have been examined, Minister Hayes will bring proposals to Government in advance of Committee Stage. This is an important piece of legislation aimed at creating a more level playing field between contractor and subcontractor in the construction sector. Therefore it is essential that these complex issues are properly assessed so as to avoid imposing unnecessary regulatory or cost burdens on parties in dispute, the State or others.