Dáil Éireann Debate, Tuesday - 24 July 2018
507. Deputy James Browne asked the Minister for Education and Skills the status of sub-contracting companies that have suffered losses consequent to the collapse of a company (details supplied); and if he will make a statement on the matter. [33255/18]
Amharc ar fhreagra508. Deputy James Browne asked the Minister for Education and Skills if he will engage with the sub-contractors working on the public private partnership that suffered losses as a result of non-payment by a company (details supplied); and if he will make a statement on the matter. [33256/18]
Amharc ar fhreagra509. Deputy James Browne asked the Minister for Education and Skills if he is satisfied that sub-contractors are appropriately protected under current schemes of the public private partnership; and if he will make a statement on the matter. [33257/18]
Amharc ar fhreagra510. Deputy James Browne asked the Minister for Education and Skills the steps he will take to ensure payment for those sub-contractors working on public private partnership contracts that have suffered losses as a result of the collapse of a company (details supplied); and if he will make a statement on the matter. [33258/18]
Amharc ar fhreagraI propose to take Questions Nos. 507 to 510, inclusive, together.
The Schools Bundle 5 Public Private Partnership (PPP) programme comprises five school buildings and one further education college across four sites in Bray, Wexford, Carlow and Kells. The Department of Education and Skills is acutely aware of the difficulties faced by a number of sub-contractors who had been engaged by the company referred to by the Deputy in respect of that programme.
We understand that the situation faced by these sub-contractors is very difficult given their contractual counterparty is now in liquidation. However, it must be emphasised that the Department of Education and Skills is not, and was not, party to any contract with these sub-contractors. Their contractual relationship was with the company referred to by the Deputy.
At the end of December 2017, the PPP company, InspiredSpaces, confirmed to the National Development Finance Agency (NDFA), which procured the project on behalf of the State, that the company referred to by the Deputy had been paid in full in accordance with the contract to that point and that there were no issues arising.
Neither the Department nor the NDFA have information on the detailed contractual and payment arrangements between this company and its subcontractors. These matters were agreed exclusively between the private parties, as is the norm on any school building or public works contract. The company referred to by the Deputy is now the subject of statutory liquidation proceedings and therefore engagement with its creditors is the responsibility of the court appointed liquidator.
A replacement contractor has been appointed by the PPP company to facilitate the completion of three schools by the end of August and to undertake survey and preliminary work at the other three buildings in the Bundle 5 PPP programme. Former sub-contractors and suppliers of the company referred to by the Deputy are encouraged, where possible, to avail of the opportunity now presented to actively engage with the replacement contractor, in order to agree commercial terms for their re-engagement at the relevant school sites.
It is recognised that there have been wider problems in the construction industry with regard to non-payment of sub-contractors by main contractors for work undertaken. This behaviour is unacceptable. The Construction Contracts Act was enacted in 2013 to address poor payment practices in the industry and applies to construction contracts entered into after 25 July 2016. Sub-contractors are encouraged to use the provisions of the Act, wherever possible, to proactively enforce their entitlements.
