Written answers

Tuesday, 12 February 2013

Department of Education and Skills

FÁS Contracted Training Companies

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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To ask the Minister for Education and Skills the number of contracted training companies employed by FÁS that have payments due to them for courses delivered now being withheld or retained by FÁS; if the amount of money involved in each case will be listed with an indication as to how long the amount is being withheld; if he will state the way these amounts are accounted for in the annual returns of FÁS; if the State's prompt payment policy is being breached; if legal fees have been incurred relative to this issue; if there is a special unit appointed to resolve the issues with the companies involved; and if he will make a statement on the matter. [7246/13]

Photo of Ciarán CannonCiarán Cannon (Galway East, Fine Gael)
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Outside of normal processing of retention claims, currently there are no payments outstanding to contractors. At the end of January 2013, there are 101 Contracted Training Companies that have amounts retained by FÁS in accordance with contractual obligations in relation to 2011, 2012 and 2013. The value of such retentions is €3.120m. This amount is accrued in the books of FÁS in accordance with generally accepted accounting principles, i.e. prudence concept even though no liability arises until all contractual commitments are met.

There is no breach of prompt payment legislation in relation to such retentions as contractors must complete certain contractual commitments before such amounts become payable and are then authorised for release. There are High Court proceedings currently being taken against FÁS by a contracted trainer in respect of course retention fees allegedly owed. In light of this, it would not be appropriate for me to say anything further on this matter.

There is no special unit in FÁS responsible for resolving issues in relation to retentions. The management of retention release is a normal part of the contract process and is dealt with on a contract by contract basis by the FÁS Training Centre that issued the contract. There is a unit in FÁS that is responsible for Contracted Training policy and this unit may assist in the resolution of issues that Contractors may have subject to contractual commitments and legal advice if necessary.

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