Vol. 438 No. 1
16 Mr. Gregory asked the Minister for Finance if he will consider arrangements to provide for a percentage of local employment on all major public/State financed building projects, particularly where those projects are located in disadvantaged areas, with high levels of unemployment in the immediate indigenous community.
Imposing a requirement of the type suggested by the Deputy on a general basis would give rise to difficulties. These would relate firstly to increasing costs, and secondly, to our obligations, particularly in relation to EU-funded projects, to award contracts in accordance with the EU provisions.
Taking due account of the above factors it is open to contracting authorities in appropriate individual cases to consider arrangements to encourage the recruitment of local labour.
Is the Minister concerned about the understandable resentment and frustration of local unemployed people in areas of the inner city, such as, Sheriff Street and Seán McDermott Street where large public and private projects, with a few exceptions, failed to give employment to local people who then feel rejected and insulted by such treatment? If, as the Minister states, a legal binding contractual arrangement is not possible could successful contractors be encouraged to give a proportion of jobs to local people, particularly in those areas of high unemployment?
I share Deputy Gregory's concern in this regard. This problem does not only relate to Dublin. This issue arose in the famous Kilrush marine case some years ago and similar arguments have been put forward in a number of urban areas around the country. I had deputations from people in Limerick and Cork about this issue before Christmas. I have considered the matter extensively, including some of the projects to which Deputy Gregory referred. The largest project was the Financial Services Centre in which Deputy Gregory was involved. That project generated high aspirations of employment which to some extent were fulfilled, but it did not provide employment for all those who were hopeful of gaining it. From discussions I had with various authorities there seems to be scope for aggressively promoting the use of local labour contracts by relying on voluntary elements. From legal and administrative advice I received, I understand that it is not contrary to the spirit of the European Union to include local labour clauses in contracts. At one time the position was that one could not include provisions in contracts because it would be counter to the EU's internal obligations, but now there seems to be room for manoeuvre in that regard provided such provision does not incur additional costs, but I understand the position cannot be altered on a statutory basis. It seems it would be possible to aggressively promote the use of local labour clauses by relying on the voluntary element and I will do what I can to promote that matter.
Regarding the Croke Park redevelopment project which received public moneys courtesy of the Minister, could he use this opportunity to urge the developer to give employment to people from the local areas of high unemployment, Ballybough and Clonliffe? Those communities have had to suffer the by-products of massive reconstruction and have been insulted by the developer who has told members of local communities that there is no prospect of local jobs being provided in that redevelopment project.
I have discussed this issue with a number of different groups in the private and public areas. I have also spoken to officials of the Office of Public Works who are involved in many contracts nationally to see what can be achieved.
A Fianna Fáil golf classic.
The difficulty is that if developers win a contract any clauses of a cost increasing nature will be passed on. This matter should have some success having regard to the developments located in areas of high unemployment throughout the country.
