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Dáil
‹ Leaders’ Questions.

Construction standards and enforcement

Summary

Sargent alleged poor insulation, building, health-and-safety and inspection standards in construction, including publicly funded housing, and pressed the Taoiseach on accountability. The Taoiseach said breaches of payment and other rules were unacceptable, cited investigations and said he would follow up any specific information with the inspectorate.

I thank the Ceann Comhairle for his intervention. Feelings on this matter are running very high. I cannot believe that the Taoiseach can state that there is no problem when people are faced with 40-year mortgages and are more indebted than ever before. It is a hear no evil, see no evil and speak no evil approach. I acknowledge that our construction sector is healthy in that its profits are high. However, the results are poor insulation, poor building standards, poor health and safety practices and poor inspection standards.

In June 2005, I raised a certain issue with the Taoiseach who gave me a commitment I believed would stand up. I raised with the Taoiseach and the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Killeen, the serious problem of subcontractors and suppliers suffering from serious underpayment from main contractors. Almost one year later, not only do our main contractors, including Glenman Corporation, continue to benefit from public sector contracts for which taxpayers are paying through the nose, companies and suppliers working for them are still being forced into bankruptcy and liquidated as I speak. Does the Taoiseach believe such a construction industry is healthy?

I am not sure if the main contractor I mentioned is one of the main donors to Fianna Fáil but it is a major sponsor of the Galway Races in which Fianna Fáil has a major interest. However, I have hard evidence to show that Glenman Corporation broke its payment terms of subcontracts with, for example, KBD Engineering and that taxpayers' money is not reaching the people who carry out the work on these Government contracts. In June 2005, the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Killeen, told me that local authorities would maintain a watching brief to see if and how this matter is resolved and the Taoiseach told me that anyone breaching the law would not receive Government contracts.

Will the Taoiseach call in the Department of the Environment, Heritage and Local Government, South Dublin County Council, Glenman Corporation and those subcontractors to answer the question he said they would be forced to answer? He said that if such companies breached the law, they would not receive Government contracts, but they have received contracts and, like many people, do not think he is serious about fraud in this country.

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Deputy Sargent misunderstood what I said at Druid's Glen.

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The construction industry.

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I am glad to clarify matters about any breaches of the law and procedures to assist Deputy Sargent. If anyone breaches the Prompt Payments of Accounts Act 1997 or does not pay subcontractors, I would be glad to discuss it with the inspectorate. Any such breaches, regardless of whether they relate to payment, standards or breaking the guaranteed housing system, are unacceptable.

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The Taoiseach did that a year ago.

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There have been investigations into a number of companies.

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In respect of PRSI or tax?

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A number of companies have been hauled over the coals.

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No one has been called to account.

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The standards followed, especially those relating to the public sector, are very high.

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There is no evidence of this.

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We may not always witness the same standards in the private sector but regulations exist to do this. In our social and affordable housing initiatives——

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They are public contracts. They are social and affordable housing initiatives.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

The Taoiseach, without interruption.

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If there are any breaches of the law in these initiatives, regardless of whether they are national housing schemes, local authority schemes or any schemes funded by the Department of the Environment, Heritage and Local Government, we will happily follow them up because the inspectorate exists to ensure such breaches do not happen. A number of cases are investigated every year but I will certainly follow up any information given to me by Deputy Sargent.

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