Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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51. To ask the Minister for Public Expenditure and Reform if he given consideration to substantial penalties for companies in receipt of public contracts that do not meet minimum standards of proper wages and conditions for their employees or that are found to be fraudulent and or non-compliant with the law in areas such as tax, health and safety and building regulations; and if he will make a statement on the matter. [40483/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The enforcement of tax, social welfare, and employment legislation; health and safety, and building control regulations etc. apply equally to public and private sector contracts. Consequently, it is not for me as Minister for Public Expenditure and Reform to set out a separate policy for public sector contracts. 

It is the responsibility of each contracting authority to ensure that contracts are awarded to compliant businesses through the standard procedures contained in the procurement process.

The public works contracts make provision for certain contractual remedies where the contractor’s or their subcontractor’s workers have not been paid in accordance with statutory requirements.

The contracts also permit deductions to be made from payments in accordance with the legislation governing taxation.

Health and Safety legislation is also underlined and enforced throughout the contract, enshrining legal requirements as conditions of contract so that serious health and safety breaches may be relied upon as breach of contract leading to termination.

Payments under the public works contracts are in arrears and for work that is certified to have been carried out in accordance with the contract’s requirements.  Such requirements must have regard to the Building Regulations.  Deductions may be made for non-compliant work and, depending on the nature and extent of the defect, failure to remedy same may lead to early termination.

These are in addition to the remedies contained in law which are enforced by the appropriate statutory bodies who possess the necessary powers to investigate and to bring proceedings.