Dáil Éireann Debate, Tuesday - 7 December 2010
54 Deputy Joe McHugh asked the Minister for Finance if he will provide or secure remuneration for construction companies that are unpaid by liquidated major construction companies for subcontracts completed on major public building projects; and if he will make a statement on the matter. [45865/10]
Amharc ar fhreagraUnder the Public Works Contracts, a State contracting authority is contractually obliged to pay the main contractor in respect of work done. If a main contractor goes into liquidation before a State body has fully paid for work done then Company Law dictates that the debt is still due but is payable to the liquidator, who has specific obligations under Company Law about how to handle the various assets and liabilities of the liquidated Company.
For as long as a public body is still obliged to pay the liquidator for any amounts it owes to a main contractor, then any other action could have adverse consequences for the taxpayer. Therefore it would not be appropriate to put in place arrangements for direct payment to subcontractors.
Senator Feargal Quinn's Construction Contracts Bill 2010 is currently before the Seanad. It seeks to provide some remedy for construction sector subcontractors who are unpaid for work done. The Government has been working closely with the Senator to bring his proposals into an effective scheme without exposing the taxpayer to further costs or risks. This is a complex area. The Bill will be progressing shortly.
55 Deputy Joe McHugh asked the Minister for Finance the number of construction companies to which the State awarded building contracts valued at more than €19 million in the years 1997-2010; the relevant number of building contracts; and if he will make a statement on the matter. [45866/10]
Amharc ar fhreagraThe information sought by the Deputy is held by the individual contracting authorities concerned. They are not currently required to pass this information to the Department of Finance. I will seek to have the data compiled and communicated as soon as may be to the Deputy.
