Brian Stanley (Laois-Offaly, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

124. To ask the Minister for Public Expenditure and Reform if his attention has been drawn to the fact that the company (details supplied) awarded the contract to carry out Wicklow's River Dargle flood defence scheme has gone into examinership and has proceeded to close down operations; while it appears that the company has received payment, many of the subcontractors have not been paid; if Wicklow County Council is responsible for payment to subcontractors and their employees; the persons now responsible for the completion of this important project; and if he will make a statement on the matter. [51452/13]

Brian Hayes (Dublin South West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Deputy will be aware that fundamental issues of dispute arose between the main contractor and Bray Town Council, which is the Contracting Authority on the project, which were referred by the contractor to third party conciliation. The parties subsequently agreed to extend the ambit of the conciliation to encompass issues relating to other aspects of the scheme.

Several meetings took place between the parties under the auspices of the Conciliator. However, these discussions did not produce a solution that would allow the contract to be fulfilled to the satisfaction of both parties and in a manner that would deliver the level of flood protection the scheme was designed to provide, consistent with the accepted tender sum.

In the course of the conciliation process it emerged that the contractor had entered Examinership. Bray Town Council and the OPW entered into discussions with SIAC and the Examiner, under the aegis of the Conciliator. After intensive negotiations, it was agreed last week that the best option available to the parties would be to terminate the contract with SIAC by mutual agreement. Based on this agreement, SIAC has now left the site, and it will be necessary to procure new contractors to carry out the remaining elements of the scheme.

I understand that under Bray Town Council's contract with SIAC, the Council is not responsible for payment to sub-contractors or their employees.

Bray Town Council and the OPW remain fully committed to completing the scheme to provide the standard 1-in-100 year level of protection. Preparation of the necessary documents required for the appointment of new contractors will commence immediately, with a view to re-commencing works during 2014, having regard to environmental constraints. The OPW has made provision for the project in its profiles of expenditure for each year to 2016.

It is important to point out that the works that have been completed to date will have a significant beneficial affect in alleviating flood risk in the interim period.