David Cullinane (Waterford, Sinn Fein)
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238. To ask the Minister for Education and Skills the status of the liquidation of a company (details supplied); the effect this has had on small businesses in the sector; and if he will make a statement on the matter. [35450/18]

Richard Bruton (Dublin Bay North, Fine Gael)
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The company referred to by the Deputy entered examinership in April 2018 and was subsequently liquidated on 5 June 2018.

  The Department of Education and Skills has been made aware of payment difficulties faced by a number of sub-contractors which had been engaged by the company under reference in respect of the Schools Bundle 5 PPP project and other non-PPP school projects.

This situation is very regrettable.  However, it must be emphasised that the Department of Education and Skills is not, and was not, party to any contract with these sub-contractors.  Their contractual relationship was with the company which is now in liquidation.

In the case of the Schools Bundle 5 PPP project, a replacement contractor has now been appointed by the PPP company.  Sub-contractors of the company under reference have been encouraged, where possible, to avail of the opportunity presented to actively engage with the replacement contractor, in order to agree commercial terms for their re-engagement at the relevant school sites.

It is recognised that there have been wider problems in the construction industry with regard to non-payment of sub-contractors by main contractors for work undertaken.  This is clearly unacceptable.  The Construction Contracts Act was enacted in 2013 to address poor payment practices in the industry and applies to construction contracts entered into after 25 July 2016. 

In order for the Construction Contracts Act to be effective, it is essential that sub-contractors fully exercise their rights under the legislation and access the remedies available.  While the Act does not cut across the rules for company insolvency proceedings, the magnitude of the exposure that many sub-contractors currently face upon the insolvency of a contractor would not arise if the provision for payments were insisted upon and the remedies available were exercised when payment was not forthcoming.