asked the Minister for Local Government if, in view of the difficulties experienced by local authorities in securing from contractors the necessary bond for the awarding of building contracts and the consequent delays encountered particularly in relation to the commencement of small housing schemes, he will have the matter investigated with a view to eliminating these obstacles.
Ceisteanna—Questions. Oral Answers. - Building Contract Bonds.
95.
As I stated in reply to Questions Nos. 8 and 9 on 22nd May, 1973, I am having the general question of bonds for local authority housing contracts examined in my Department and when this examination, which includes a review of arrangements in other EEC countries, has been completed, I will decide what new measures can be taken.
Housing authorities already have discretion to dispense with bonds for single cottages and small schemes.
The Minister referred to small schemes. Can he state what number of houses would be described as a small scheme in relation to this matter?
I should prefer a local authority to decide how far they could risk giving the option to build without a bond rather than define here a definite number. I think the Deputy would agree with that.
Has the Minister considered having a reduced bond? The idea of having a 100 per cent bond is an anachronism. A much reduced percentage of the actual value of the contract is good security and this was advocated by me before I left the Department. In fact, we did it in some cases but I do not know if it was continued.
I agree with the Deputy that it requires revision. Unfortunately, he did not take the necessary steps when he was Minister but he did advocate it, as I did when I was in Opposition. He can be assured I propose to do something about it now.