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Dáil Éireann díospóireacht -
Tuesday, 13 Oct 1998

Vol. 495 No. 1

Other Questions - Fixed Price Tendering.

John V. Farrelly

Ceist:

41 Mr. Farrelly asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19142/98]

Olivia Mitchell

Ceist:

44 Ms O. Mitchell asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19138/98]

Dinny McGinley

Ceist:

47 Mr. McGinley asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19134/98]

Paul Connaughton

Ceist:

50 Mr. Connaughton asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19145/98]

Alan Shatter

Ceist:

53 Mr. Shatter asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19139/98]

Pádraic McCormack

Ceist:

55 Mr. McCormack asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19147/98]

P. J. Sheehan

Ceist:

60 Mr. Sheehan asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19133/98]

Richard Bruton

Ceist:

72 Mr. R. Bruton asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19136/98]

Nora Owen

Ceist:

73 Mrs. Owen asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19135/98]

Frances Fitzgerald

Ceist:

79 Ms Fitzgerald asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19141/98]

Monica Barnes

Ceist:

80 Mrs. Barnes asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19143/98]

Ulick Burke

Ceist:

83 Mr. U. Burke asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19144/98]

Michael Joe Cosgrave

Ceist:

90 Mr. Cosgrave asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19137/98]

Gay Mitchell

Ceist:

100 Mr. G. Mitchell asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19140/98]

Alan M. Dukes

Ceist:

104 Mr. Dukes asked the Minister for the Environment and Local Government if his attention has been drawn to a difference of opinion between his Department and the Association of Electrical Contractors (Ireland) in relation to proposed terms for fixed price tendering; if his attention has further been drawn to the fact that these differences could seriously delay work on many important infrastructural projects funded through his Department; and if he will make a statement on the matter. [19149/98]

I propose to take Questions Nos. 41, 44, 47, 50, 53, 55, 60, 72, 73, 79, 80, 83, 90, 100 and 104 together.

The report of the Strategic Review Committee on the Construction Industry, Building Our Future Together, was approved by the then Government and published in June 1997. The committee was broadly based and representative of private and public clients, the design professions, contractors, unions, and building product manufacturers. The report contained a total of 86 recommendations, including a recommendation that fixed price tendering should apply to fully designated projects with construction periods not exceeding 11 months.

In October 1997, I established a broadly based forum for the construction industry to advise on and oversee the detailed implementation of all of the recommendations contained in the strategic review committee's report. I understand that, at a meeting in early December 1998, the forum plans to finalise detailed proposals for the implementation of some 40 recommendations, including that on fixed price tendering.

Both the forum and myself have received a considerable volume of representations about the fixed price tendering recommendation from the Association of Electrical Contractors (Ireland) and individual electrical contractors. I do not want to comment on this specific recommendation at this stage until I have received and considered the forum's specific implementation proposals and report.

In general terms, however, the 86 recommendations were agreed and adopted by the broadly based strategic review committee without formal dissent from any committee member. They were subsequently accepted by the Government. The committee's recommendations were approved for implementation as an integrated package. There is a consensus between the construction industry and myself that the recommendations must all be implemented as a package, without cherry-picking specific recommendations which benefit some parties to the exclusion of certain recommendations which benefit other parties.

Is the Minister not aware that it had been proposed originally to implement at least some of these recommendations with effect from 1 September last? Would he not agree that it shows the nature of the problem that now they have been postponed until December? Could the Minister not accept that the proposals on fixed price tendering in relation to a high import content component of the work is one which may prove difficult, given the fact that sterling is not in the single currency system and the punt is? Would the Minister not agree that it would be entirely appropriate to make a safety net provision to deal with the difficulties that will arise for some contractors from that difference?

At no stage was I aware that this report was to come to me by 1 September. The date indicated to me by the chairman at all times was December and remains so. In relation to the point raised by the Deputy, I would reiterate that everybody who sat on that committee produced a report and recommendations. The current procedure is about implementing those recommendations, not about opening up discussion on the recommendations themselves. On the question of cherry-picking, if we go down that route, if anybody is seen now to be withdrawing their consent to one or other of the more than 80 recommendations, that would open up the whole procedure again, and I am not prepared to do that. I accept that there may be particular difficulties, but it is open to individuals in this situation to make plans now to avoid the type of situation the Deputy fears might arise. In particular, it is open to people to hedge against any changes that might take place in relation to the value of sterling as against the euro. It is possible for them to source plant from any one of the other ten countries who will be EMU members, and thereby guarantee fixed exchange rates and so on. In general terms, the energies of some of the people lobbying on this would be better spent on looking at those options rather than trying to change something they agreed to 12 months ago and which is part of an overall package of over 80 recommendations.

Would the Minister agree with me on a view I have held for a very long time, that it is utterly unrealistic of any commission set up by any Government to say when it produces a report that all or none of it must be implemented? That is pure farce. Would the Minister not agree that that would reduce the Government, and the Minister in this case, to a status to which one of his colleagues objected — it is not that long since we listened to a Minister in this House saying, "I am not a rubber stamp". Would the Minister not agree that what he is saying is that Ministers should become rubber stamps? Would he not agree that the majority of member firms of the Association of Electrical Contractors (Ireland) are not in a position to forecast with any great confidence how much Government contract work they will be participating in over the 12 month period ahead? Would he not agree that, in the nature of things, few of them are in a position to engage in hedging in the way major financial operators would? Will the Minister agree he is being a little unrealistic in this regard and that he is in danger of making a federal case of what should be a simple problem to resolve?

If it is a simple problem to resolve, the proper place to do so is within the review committee which is involved in that area. If it is that simple, there should be no great difficulty.

Will the Minister, therefore, acknowledge the letter he received on 30 March? Six months later it has not been acknowledged.

The Minister without interruption.

This matter is being dealt with within the committee. The Deputy mentioned rubber stamping and so forth. If rubber stamping was done on this report, it was done by the Government of the day and the Deputy was a member of that Government. It was a good report and that Government was wise to accept its recommendations. However, Deputies will agree that the report was carried out on the basis of give and take on all sides and that it represented the best view of the entire construction industry. I agreed with that at the time and I still do. Nobody should start cherry-picking. It is a matter that should be resolved within the forum.

The Minister should crack the whip for some common sense.

Will the Minister agree that the strategic committee of the construction industry was established by the previous Government to examine efficiencies and cost effectiveness within the industry in order to mirror the benefits which resulted from the Latham report in the United Kingdom? Will he accept that the boom in the construction industry in recent years has changed the dynamic somewhat and that this should be taken into account in the implementation of the committee's recommendations? When I was Minister I was happy to endorse those recommendations and to bring them to Government.

I defer to the Deputy's knowledge of the reason for the establishment of the committee. Conditions in the construction industry have improved. Huge growth rates have continued for a number of years. Everybody is aware of the huge increase in volumes and in the value of the industry, which will be more than £9 billion this year. The case we are discussing underlines the fact that we should go ahead and prepare for the downturn if it arrives. These recommendations will help in that regard.

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