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Epidemic of liquidations and examinerships show procurement policy is failing - Jonathan O'Brien TD

26 June, 2018 - by Jonathan O'Brien TD

Sinn Fein spokesperson for Public Expenditure and Reform, Jonathan O’Brien TD, called into question the government’s procurement policy and called for its review. 

This comes following the revelation that over 40 construction companies have gone into examinership or liquidation since the beginning of 2018, with a 50% increase in companies leaving the Construction Industry Federation. 

Deputy O’Brien said:

“The liquidation of Sammon Contracting Ireland and the Sammon Contracting Group raised serious questions over the government’s almost dogmatic faith in the PPP model to deliver capital and public projects.

“As a result of this liquidation, not only was the delivery of several schools jeopardised, but a multitude of subcontracting companies and numerous jobs will be lost due to a failed procurement policy that unnecessarily exposes firms and workers to the risks associated with private finance.

“Not only is this delay unacceptable, it further undermines the government’s irrational belief that private-public partnerships are the best and often only way of delivering capital projects. They are not.

“The recent news that 42 companies have gone into either examinership or liquidation as a result of the government’s procurement process further exemplifies the failure of the government to deliver public projects efficiently and protect Irish firms and workers. 

“Under the purported aim of delivering public projects in a cost-effective manner that secures the taxpayers value-for-money, the Government has pursued a race-to-the-bottom procurement policy that has delivered questionable results and damaged indigenous Irish companies.

“Amidst what has been described as a growing epidemic of liquidations and receiverships in the construction industry as a result of government procurement policy, it is time for the Government to review its procurement strategy and adopt a policy that delivers projects, protects workers and secures, rather than undermines, the viability of construction firms and businesses.

“Fine Gael often claim that it is not government that creates jobs, but businesses. Its procurement policy is ensuring that government is endangering jobs and damaging businesses.”

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