Written answers

Tuesday, 23 January 2018

Department of Education and Skills

Public Private Partnerships

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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236. To ask the Minister for Education and Skills the contracts with subcontractors and service level agreements impacted by the collapse of a company (details supplied) working on projects, by school; and if he will make a statement on the matter. [3436/18]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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237. To ask the Minister for Education and Skills the quantum of payments to Irish registered contractors that will be impacted by the collapse of a company (details supplied); and if he will make a statement on the matter. [3437/18]

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Fianna Fail)
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238. To ask the Minister for Education and Skills his plans to put in place a mechanism to ensure that subcontractors working on projects related to the construction of schools impacted by the collapse of a company (details supplied) will be compensated in case that payments due to these contractors are not made; and if his Department will provide funding for such a programme. [3438/18]

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael)
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I propose to take Questions Nos. 236 to 238, inclusive, together.

Building projects under the PPP programme are a complex arrangement of contractual relationships between the client, the main contractor, specialist sub-contractors, domestic sub-contractors, supplier of materials, suppliers of plant etc. 

In the case of the Schools Bundle 5 programme a contract (called a project agreement) exists between my Department and the Principal contractor, Inspiredspaces. Inspiredspaces is the name of the Special Purpose Vehicle (SPV) responsible for the design, construction, finance, operation and maintenance of the programme.

Sub-contractors on the project are employed by Inspiredspaces in that respect or indirectly by Inspiredspaces through other sub-contractors. It is a matter for all sub-contractors to agree terms and conditions and a schedule of payments with Inspiredspaces as their direct employer. 

The company referred to by the Deputy has been a 50% shareholder in InspiredSpaces. However, it is important to note that Inspiredspaces remains in place as the SPV responsible for delivery of Schools Bundle 5. The other 50% shareholder in the SPV is the Dutch Infrastructure Fund (DIF).

The National Development Finance Agency manages the Project Agreement with Inspiredspaces on the Department's behalf. It is currently engaging with DIF in relation to next steps. Every effort is being made to ensure delivery of the schools in as timely a manner as possible in that context.

The enforcement of contractual rights is a matter for individual suppliers. As such the Department has no authority to intervene.

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