Dáil Éireann Debate, Tuesday - 12 February 2013
317. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform in relation to the issue of underbidding on public procurement contracts, the measures he is taking to ensure that the Registered Employment Agreement is enforced; if the same enforcement procedures are being taken with regards to sub contractors; and if he will make a statement on the matter. [6744/13]
View answerThe public works contracts include a clause on pay and conditions of employment which require the main contractor to ensure that all those employed on the works (including those employed by sub-contractors) are paid in accordance with the Registered Employment Agreement (Construction Industry wages and conditions of employment). This is enforced through a number of measures which include:
- the display of the relevant clause on the site in a location that is readily accessible to all those employed on the site;
- a requirement for a certificate from the contractor with each payment application stating that all those employed on the works are paid in accordance with the REA;
- withholding of any payment if the certificate is not provided;
- a deduction from sums due to the main contractor of the amounts due to workers in accordance with the REA if a certificate is subsequently found to be false, and;
- termination of the contract in the case of a persistent breach.
Under a public works contract the contractual relationship is between the public body and the main contractor. The public body does not conduct the procurement process for each sub-contract package under a public works contract; this is carried out by the main contractor who is not subject to the rules governing public procurement.
The management of a public works contract is a matter between a contracting authority and a main contractor. It is the responsibility of each contracting authority to ensure that contractors comply with all the requirements of the contract.
Whilst the requirements to follow REA conditions may be a procurement matter, it is the National Employments Rights Authority that has the responsibility for monitoring employment conditions through its inspection services and can enforce employment rights compliance and seek redress. This agency comes under the aegis of my colleague the Minister for Jobs, Enterprise & Innovation, Mr. Richard Bruton T.D. If the Deputy is aware of specific instances where firms may not be complying with relevant statutory pay and conditions of employment, the matter can be referred to NERA for investigation.
