Terence Flanagan
Question:8. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation when the Construction Contracts Act will be enacted; and if he will make a statement on the matter. [28406/15]
View answerWednesday, 15 July 2015
Questions (8)
Oral answers (8 contributions)
The question concerns vitally important legislation for the construction industry and, particularly, subcontractors to ensure they receive payment from contractors. The legislation was signed into law on 29 July 2013 but we are still waiting for the commencement of various parts of that legislation. Will the Minister provide an update on the bottlenecks and the reason for the delay in the legislation being commenced?
I thank the Deputy for tabling the question. The Government is committed to the earliest possible implementation of the Construction Contracts Act 2013 and, as a consequence, last November approved the delegation of responsibility for its implementation to me as Minister of State with responsibility for business and employment. Significant work has taken place since then. I have recently appointed Dr. Nael G. Bunni as chairperson of the construction contracts adjudication panel. Discussions are taking place with the Public Appointments Service to arrange an open competition for the selection of applicants for inclusion on the ministerial appointed panel of adjudicators.
I am informed the Public Appointments Service will seek expressions of interest from suitably qualified persons in the coming weeks. In accordance with the Construction Contracts Act 2013, such persons will be drawn from categories specified in section 8(6) of the Act. I am also overseeing the preparation of a code of practice for the conduct of adjudications, which will be binding on all adjudicators operating under the Act. Once the preparatory arrangements have been finalised, a date for implementation of the Act will be announced in advance to provide sufficient notice to those affected by the Act's provisions. I expect that to take place later on this year.
I thank the Minister for his reply and note his commitment in trying to get this legislation off the ground but this has been dragging on for quite a number of years at this stage. It is vitally important legislation, particularly for subcontractors who are unfortunately closing because of cash flow difficulties. In some instances they are not receiving payments from very large contractors who are making their lives extremely difficult.
I accept a chairperson has been appointed to the panel of adjudicators, which is good news, but will the Minister of State push the matter forward and ensure the full panel is put in place as a matter of urgency? I understand the Minister of State is looking for specialist and very qualified people to be appointed to the panel. Will the Minister of State give us an update on the code of practice regarding adjudications? I know the Minister of State had hoped all of this would be in place by spring of this year but that unfortunately has not happened. Will the Minister of State give a further update on the timetable for the implementation of the Act?
This is an important provision under the Construction Contracts Act 2013 and I only received responsibility for it towards the end of last year. I proactively sought this responsibility because I see it as being critically important to the construction industry, an industry that has suffered over the past few years. It is particularly important for SMEs operating in the construction sector, especially subcontractors, that there is a clear, fair and transparent system in place. Such a system has been lacking for years.
One of the issues we had was to identify a suitable and appropriately qualified individual who would command respect right across the industry. We have managed to do that in the appointment of Dr. Nael Bunni. His appointment has been widely welcomed by stakeholders in the sector. He is eminently qualified and internationally renowned in this space and I consider ourselves lucky to have his services.
It is important the appointment of the panel of adjudicators is done in an open and transparent fashion. The last thing I would do is simply appoint individuals based on an application to me or someone else. It is appropriate it is done through the Public Appointments Service and that will take some time but I expect the process to be concluded and for this scheme to be up and running shortly.
Will the Minister of State clarify if he will sign a statutory instrument when the panel of adjudicators is in place? Companies are suffering greatly because of the failure to commence this legislation. Some huge companies do not always pay their subcontractors in a timely manner, causing huge cash flow difficulties for them and companies are working on projects despite having no guarantee of payment. The sooner we have the adjudication process in place, the better. I welcome the appointment of Dr. Nael Bunni, who is highly respected within the construction industry, as well. The sooner everything can be implemented, the better.
There is little for me to add other than to say this is a priority and I have given it my full commitment. We need to get the right people for this important panel to ensure the aspirations underpinned by the legislation work for everyone involved. I hope it will be a swift process but it needs to be open and transparent. The Public Appointments Service process will take some time but I am satisfied it is being expedited and look forward to the panel being appointed shortly and doing the work the legislation requires of it.
Will the Minister of State be signing a statutory instrument?
I believe so.