Derek Nolan (Galway West, Labour)
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122. To ask the Minister for Jobs, Enterprise and Innovation if he will reconsider the nature of Government contracts relating to stipulations particularly pertaining to pension schemes which must be utilised in order to satisfy the requirements of that contract; and if he will make a statement on the matter. [26030/13]

Richard Bruton (Dublin North Central, Fine Gael)
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All construction related projects involving public expenditure must conform to Department of Public Expenditure and Reform Procurement Procedures. These procedures have included an obligation that the contractor ensures that the rates of pay and the conditions of employment, including pension contributions, comply with all applicable law, including Registered Employment Agreements (REAs) when engaged on public works contracts.

In the judgement delivered on 9 May last in McGowan and others v The Labour Court, Ireland and the Attorney General, the Supreme Court held that Part III of the Industrial Relations Act 1946 was invalid having regard to Article 15.2.1 of the Constitution. That Article provides, in effect, that the exclusive power to make laws is vested in the Oireachtas. The Supreme Court took the view that REAs are instruments having the status of laws made by private individuals. While the Constitution allows for the limited delegation of law making functions, the provisions of the 1946 Act went beyond what is permissible under the Constitution. The effect of this decision is to invalidate the registration of employment agreements previously registered under Part III of the 1946 Act.

In light of the Supreme Court decision on the REAs, my colleague the Minister for Public Expenditure and Reform is seeking legal advice on the continuing inclusion of provisions relating to pay and pension entitlements in respect of those workers engaged on a public works contract.