Public contracts and Northern competition
Barry and Fitzpatrick question the awarding of public contracts to firms outside the State, especially Northern Ireland contractors and alleged cost advantages. Brady cites EEC rules for major contracts, says he favours work going to firms operating in the State, and says concerns are regularly monitored.
asked the Minister for the Environment whether he has received representations from the CIF to ensure the placing of public contracts with Irish firms.
Comment on this
(Dublin South-East): The Construction Industry Federation and, indeed, other representatives of the building industry, have from time to time expressed concern to me about the awarding of public contracts to firms from outside the State. While this is a concern which I share, I have had to point out that because of this country's obligations as a member state of the European Economic Community firms from other member states bidding for certain major public contracts cannot be excluded from such contracts on grounds of nationality.
Comment on this
Is the Minister aware of the concern in the construction industry of the awarding of public contracts in this State to firms from Northern Ireland, and what is his attitude towards those?
Comment on this
(Dublin South-East): I might elaborate on what I have said because it will include this problem. I have had no specific recent representations from the Construction Industry Federation concerning the placing of public contracts with Irish firms though that has been the case in the past. This is a subject matter aired regularly at meetings between the Department and representatives of the industry. The most recent such meeting was held on 29 April last when it was alleged that the current problems in the industry were being exacerbated by the incidence of Northern Ireland contractors getting public contracts in the South. The situation in this regard has not deteriorated since early 1981 when an inter-departmental examination was carried out at the request of the Government. At that time the conclusion drawn was that the level of intervention by Northern contractors in the South was not such as to cause significant problems. On the other hand, this intervention added an extra element to competition which was to the benefit of public authorities. If the Deputy has any examples about which he is concerned I shall be happy to investigate them for him.
Comment on this
Can the Minister tell us what is his own and his Department's attitude to such contracts being awarded to firms outside the State?
Comment on this
(Dublin South-East): My attitude to it would be that work could be carried out within the 26 counties and by firms operating within the 26 counties. There is the element of what is termed the major contracts. I am sure the Deputy is aware of the value of what is classified as a major contract in EEC terms, currently to the value of £690,000 odd. Certainly at all times I like to see contracts being carried out by firms within the 26 counties.
Comment on this
Does the Minister realise that there is a contradiction between what he is saying here and what the Taoiseach said is the official Government attitude, that all Northern Ireland firms are to be invited by specific Departments to contract for work down here and, where possible, it should be given to them?
Comment on this
(Dublin South-East): I appreciate the purpose of Deputy Barry's, question. That is why I asked him if he wanted to know my personal attitude.
Comment on this
(Dublin South-East): That is what I did; if the Deputy will revert to what I said. I said what was my personal opinion——
Comment on this
I did not want the Minister's personal opinion. I wanted the Minister's opinion, as Minister, and that of his Department.
Comment on this
(Dublin South-East):——I have given an answer as regard representations from the Construction Industry Federation. If the Deputy is in any doubt as to what is the attitude of the Department I suggest that he tables a separate question asking that.
Comment on this
(Cavan-Monaghan): Has the Minister any particulars for the Border counties, particularly for Cavan and Monaghan? Is the Minister aware that my constituency of Cavan/ Monaghan is particularly vulnerable to this type of unfair and unequal competition from the North? Is he aware further that contractors in my constituency are quite prepared to face equal and fair competition but they are vulnerable to unfair competition because costs are cheaper in the North and there are other, shall we call them, hidden subsidies Northern contractors can enjoy which cannot be enjoyed by their counterparts in the South? This is most unfair to Border contractors. It is all right talking about it being all one country but Northern contractors operate under different terms, they have more favourable conditions for transport, fuel and so on. The Minister may not be aware but I would ask him to bear in mind the fact that social welfare comes into it in some strange way or other, all of it adding up to very unfair competition.
Comment on this
(Dublin South-East): Perhaps the Deputy would allow me finish. He went on for quite some time, and covered a vast area. We are living in an open economy. If the Deputy is aware of any unfair competition — of the type to which he referred — he should particularise it rather than make a general statement without being able to pinpoint any case. I am very sympathetic to the building industry, or to any firms experiencing difficulty competing with their business counterparts in the North of Ireland, but the Deputy must accept the case that this cannot be controlled by literally pulling down the shutters of protectionism.
Comment on this
(Cavan-Monaghan): The Minister is in charge of this area. With all due respect, it is up to him to find out about this unfair competition. I have referred to transport and fuel and I have directed the Minister's attention to people drawing social welfare in Northern Ireland, coming in and working here who, of course, can live cheaper than people working here but not drawing social welfare.