I have been approached confidentially by a concerned citizen who has made some very serious allegations about the operation of State construction contracts awarded and managed by the Department of Education and Skills. The whistleblower claims that a number of important State contracts have been awarded to legitimate operators but that the work is then being carried out by subcontractors who are ignoring basic terms and conditions for workers, facilitating wholesale social welfare fraud and failing to meet their statutory obligations.

One example is the refurbishment and extension of St. Patrick's College in Drumcondra, the contract for which was awarded to a major building contractor who operates legitimately in this State. However, the work is being done by a subcontractor registered outside this jurisdiction. The whistleblower claims that this subcontractor is paying rates which are far below the market rate and is facilitating workers to continue to receive a social welfare payment. This allows the subcontractor to undermine legitimate builders; it undercuts builders who are trying to employ people legitimately and who are making PRSI contributions; it takes money out of the social protection system that has already seen cuts to child benefit, the respite care allowance, the jobseeker's rate for those under 25; and, it flies in the face of the stated objective of the Action Plan for Jobs to help tradesmen to get back to work. Most important, however, the law is being broken and the contract is the Minister's responsibility.

The whistleblower also claims that this will come as no surprise to the Minister for Education and Skills because he approached him, in the first instance, to reveal this practice. He also went to the Minister for Social Protection, Deputy Burton, to alert her to the social protection fraud that was going on but nothing appears to have been done. Can the Minister confirm that the whistleblower came to him with this information? Can he outline what he has done about it? Will the Minister agree with me that this practice, which puts legitimate employers out of business and facilitates wholesale social welfare fraud, is completely unacceptable?

I thank the Deputy for raising this matter. I am aware of the allegations relating to the specific case. I have asked those in the relevant sections of my Department to make investigations. I have instructed them to ensure that all of the claims the Deputy has put on the record of the House are fully investigated. Some years ago the Department employed a special agency to go on site to ensure that the terms and conditions of contracts are being properly applied. So far, I have been told that the alleged breaches which the Deputy has now put on the record of the House are not happening but I am still not satisfied that there is not some substance to the concerns of the whistleblower in question.

My information is that Contractors Administration Services, CAS, has not entered the site at St. Patrick's College in Drumcondra to date. Indeed, that was the case when I checked an hour ago. The same whistleblower who came to me and to the Minister reported similar concerns with regard to a construction site in the midlands. That construction site was visited by a social welfare inspector who found that more than 19 people were working there while claiming social welfare. Earlier this week, a spokesperson for the Department of Education and Skills said on RTE radio that CAS would be inspecting sites during the course of the summer which is akin to telling a burglar that a house is vacant between 9 a.m. and 10 a.m. and to come on in. This is a very serious allegation and I want to know what the Minister is going to do to ensure that taxpayers' money is being well spent on State-funded projects, that workers' rights are not being infringed and that people will not be allowed to continue to claim social welfare illegitimately.

Obviously what the Deputy has just recounted is a clear instance of the law being broken and blatantly so. This problem has persisted for many years with regard to some builders on some sites. I am absolutely determined, in so far as I can, to ensure that the sites in question are operating correctly and that money raised from taxpayers is properly spent, in accordance with the law. I was assured that the inspections that have taken place to date and the inquiries that were made did not reveal any substance to the allegations made by the Deputy. However, arising from what has just been said, I will make further inquiries and respond to the Deputy directly on this matter.