Dáil Éireann Debate, Thursday - 22 November 2012
95. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the action that will be taken to ensure that subcontractors are paid in respect of State contracts when the main contractor is being paid but the subcontractor is not; and if he will make a statement on the matter. [52088/12]
View answerUnder a public works contract the contractual relationship is between the public body and the main contractor. A public body has no contractual ties with a subcontractor engaged by a main contractor. Any contractual relationship is exclusively a matter between the main contractor and its sub-contractor.
I am conscious of the difficulties being experienced by sub-contractors in this current economic climate. However the Deputy may be aware that the Programme for Government contains a commitment to introduce new legislation to protect small building subcontractors that have been denied payments from bigger companies. In this regard, my colleague Minister of State Mr Brian Hayes has been working with Senator Quinn to develop the Senator’s private member’s Construction Contracts Bill into a robust piece of legislation. The Bill has passed Second Stage in the Dáil.
The main purpose of the Bill is to help address the issue of non-payment to construction sector subcontractors who have satisfactorily completed work on construction projects. Minister Hayes is now examining the Bill with a view to progressing it as expeditiously as possible. It is important that a solution to the problem of non-payment must not place an unnecessary regulatory or cost burden on the parties to the dispute, other parties involved in the project, or the State.
