Fine Gael TD Joe McHugh has confirmed the Government’s enactment of new laws that will protect subcontractors from being burned for payment by major building companies.
He was speaking following the Dáil’s passage of the Construction Contracts Bill on July 17th.
Deputy McHugh says that the new laws will not console Donegal subcontractors who were burned when McNamara Construction Ltd collapsed in 2010, just before completion of work on the new wing of Letterkenny General Hospital – leaving many local subcontractors unpaid.
“The burning of local contractors at that time was immoral, and these new laws will prevent a repeat of that episode,” said McHugh.
But he says that the new laws will protect subcontractors from non-payment in future.
Said Deputy McHugh: “Fine Gael promised before the 2011 general election to enact new laws to ensure the payment of subcontractors by the mega building companies, for works completed on major construction projects.
“The work to enact these new laws has been going on for almost three years, and it has been a very complex and drawn-out process. The legislation was finally been completed by the Oireachtas this week, and has been sent to President Michael D. Higgins for signing into law.
“The subcontractors sector has experienced the brunt of the Irish economic crisis. Employment in the sector has fallen from a peak of 282,000 in 2006, to 96,000 today. This legislation is designed to rebuild trust within this sector, in particular for small contractors. That trust is necessary to return construction to sustainable levels of activity.
“My concern with this legislation was to balance the need for strong laws, without placing an undue red-tape burden on subcontractors or on large building companies.
“The new laws will not console Donegal subcontractors who were burned when McNamara Construction Ltd collapsed in 2010 shortly before the completion of the new wing of Letterkenny General Hospital. I know that several Donegal subcontractors were not paid for subcontracts completed on that project. The burning of local contractors at that time was immoral, and these new laws cannot be applied retrospectively. They will help, however, to prevent a repeat of that episode.”
Tags:
