Carillion school liquidation
Deputies Browne, Byrne and Brady raised the impact of Carillion's liquidation on a number of school projects, including Loreto Wexford and schools in Bray. Minister Bruton said the PPP contracts protected the State because no payments had been made, the NDFA and DIF were working through the issues, and delays would have to be resolved contractually.
Sin deireadh le ceisteanna ó na ceannairí. Rachfaimid ar aghaidh go dtí na Teachtaí eile.
Comment on this
On page 86 of the programme for Government, there is a commitment to investment in education as a prime way to grow our society and economy in tandem. In recent years, PPPs have been used to build schools, including, by way of example, the new Loreto school in Wexford town. The latter was built by Carillion, which is now in liquidation. Loreto was to move into this brand new, state-of-the-art school this week but, distressingly for everybody involved, it cannot now be occupied, indefinitely, despite the Minister's assurances to the contrary last week. It is clear there is a lack of confidence as to what will happen. Will the Taoiseach now agree that the use, efficiency and value for money of PPP agreements for investment in education buildings must be urgently reviewed? What assurances can he give to the parents, children and staff regarding this issue?
Comment on this
I raise the apparent nonchalance of the Government regarding this matter. The Taoiseach appeared to answer Deputy Howlin's question by reading from Emma O'Kelly's good reporting on RTÉ.ie. In view of the fact that the Taoiseach had to read a statement given to the media in respect of this issue, what communications did the Government have with Dutch Infrastructure Fund? This is a matter of major concern. The reality is that last week the Minister gave assurances and told all of us that everything was fine. We held back and we accepted those assurances in good faith, and they have not turned out that way. As far as Eureka in Kells is concerned, it is going to plan. It has not been told differently but I can tell the Taoiseach that the subcontractors in Kells feel terrible. They have been shafted in some cases and not just in the past week or so. In the past year, people have come to me regarding payment on that site. There are other people in the chain and it is of major concern to them now, and the Minister has not given any assurances in that regard.
Comment on this
I asked the Minister about this issue last week when news first broke that Carillion had gone into voluntary liquidation. He gave assurances in the House that there would be no delays whatsoever, other than a day or two. Something has changed substantially in the interim. I have been speaking to the National Development Finance Agency, NDFA, and it said everything has been checked out legally and it could foresee no delays whatsoever. Construction workers are walking off building sites in Bray in my constituency. I refer to two schools, Coláiste Ráithín and St. Philomena's. Coláiste Ráithín is finished. It was ready to be opened on 22 January. Additional teachers have been employed.
First year is being doubled in size and is now at 100% capacity. It is bursting at the seams. It is completely unacceptable for the Taoiseach to say they have their old schools to go back to when those old schools are not fit for purpose. They do not have the facilities.
Comment on this
We need the Minister to be more than a passive observer here.
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We need answers and the schools need answers. We need assurances.
Comment on this
We have written to the Ceann Comhairle seeking a full Dáil debate on this. I ask that provision be made for a full Dáil debate on the issue.
Comment on this
Under the PPP contract, there are clear obligations on the parties in the event of a liquidation, as has occurred here. The NDFA is the Government's agent dealing with the contracting parties, in this instance the DIF. Both the NDFA and the DIF have indicated that they are fully committed to working out the issues involved here. As the Taoiseach and others have pointed out, we have not made payments in respect of these schools and the only way investors can retrieve their money is by entering a licence agreement with the State on the handing over of those schools. As such, we are in a much stronger position in respect of these contracts than had they proceeded under a traditional build. That is in answer to Deputy James Browne's question. As the Taoiseach said, that is not to say that PPPs should be chosen in every case. In this situation, however, the NDFA, which is handling this, is in a very strong position because payment has not been made. Of course, we have to work through these remaining issues and the contract commitments in the PPP agreement have to be fulfilled.
Comment on this
The Government is leaving that to third parties.
Comment on this
It has been indicated that it will take some time to work through that. Both the DIF, representing the contractor, and the NDFA have indicated that they are fully committed to working through this as quickly as possible.