A local Fianna Fáil TD is working to help sub contractors in the construction sector facing substantial bad debts and subsequent closure of their business over the non-payment of work carried out by them.

Deputy Margaret Conlon has been working on a proposal to tackle this issue with Smart Homes founder and star of the RTE television programme, Dragon’s Den, Sean Gallagher. The proposal has resulted in the Building Construction Bill which went through Seanad Eireann recently and is now being discussed with stake holders in the industry. “I have had numerous representations from builders who find themselves in this very situation. Plumbers, plasterers, carpenters, joiners, window fitter, kitchen fitters painters or any other persons offering services in the commercial and residential construction sector are affected and if it is not addressed I believe that additional jobs will be lost in the already heavily hit construction sector,” stated Deputy Conlon.

The local TD added that many units belonging to developers in liquidation are potentially destined for NAMA and the sub contractors who supplied services and material have not been paid and are out the debt. “The materials, staff and manufacturing costs of the sub contractors’ work are now part of fabric of the building and they have no hope of getting paid. It is an unfortunate story that I have heard on countless occasions over the last number of years and such a situation is both wrong and unjust.”

Sean Gallagher believes ‘a speedy, easy, and affordable method of conflict resolution’ is required whereby a lien in favour of sub contractor could be placed on the material until such point that the units are sold and the debt discharged. “A situation developed where a speculative developer bought land for large sums and engaged sub contractor for work also worth significant sums of money and the only prospect of the sub contractor getting paid was when the units were sold by developer – in such a case the entire risk are borne by the sub contractor,” he said. Mr Gallagher and Deputy Conlon lobbied all Oireachtas members on the issue and Senator Fergal Quinn initiated the Building Construction Bill 2010, the second stage of which was debated in Seanad Eireann on Wednesday, 19 May and received cross party support.

Mr Gallagher welcomed Deputy Conlon’s support stating that without her help, the Building Construction Bill would not be in place.  Deputy Conlon concluded that while the current bill “is not a fix for the past” it will be a protection for the future when high risk speculators would be subject to strict policies and procedures in relation to their employment of and obligations to sub contractors.