37 Deputy Mary Wallace asked the Tánaiste and Minister for Education and Skills the steps she is taking to deal with the increasing reports and concerns regarding the non-handing over of payment to subcontractors of funds owed to them by contractors following works carried out on behalf of her Department for which her Department or its agencies have already paid the contractor and the substantial number of tenders that are being awarded to contractors from outside of the jurisdiction and the subsequent loss of income to the State and the consequential loss of jobs adding further costs to the State; and if she will make a statement on the matter. [46353/10]

The Deputy will be aware that under the GCCC (Government Construction Contracts Committee) Public Works Contracts there is no contractual relationship between my Department and domestic subcontractors engaged on school building projects. As such it is a matter for sub-contractors to agree terms and conditions for payment with the main contractor or other sub-contractors.

However, the issue raised by the Deputy has come to the Government's attention previously. As the Deputy will be aware, legislation on the matter is currently before the Upper House. In addition, a consultation process between the Department of Finance and the relevant industry and professional bodies has taken place to explore the legal, technical and procedural issues surrounding the regulating of payment and certain other matters under construction contracts and to provide for related matters. My Department has contributed to this consultation process and is supportive of the overall objectives.

With regard to contracts being awarded to contractors from outside the State, the Deputy will be aware that under national and EU procurement rules, companies from other Member States are entitled to tender for public competitions in Ireland. Similar protections apply for Irish companies seeking to tender for public competitions in other Member States.