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Inishowen builders squeezed out
11.02.10
by Caoimhinn Barr, Inishowen Independent
A LOCAL building firm has claimed that an unfair
tendering system is preventing small and
medium-sized companies in Inishowen from securing
lucrative public construction projects.
The firm, which did not wish to be named, said that
building companies across the peninsula had no
chance of competing with large national contractors
under the current public procurement points scheme
for state-funded projects.
At present, tenders are generally only considered
from companies who have a three-to-one ratio of the
total cost of the project. If a public scheme costs
€3 million to complete then a firm must have an
annual turnover of up to €9 million.
Urging Inishowen contractors to lobby their local
councillors and TDs, the builder said that even if
his outfit meets the criteria on turnover they will
lose on the technical capacity scoring scheme, which
effectively awards more points to firms with a
higher number of expert staff on the payroll.
With private building projects becoming increasingly
scarce in Inishowen many local firms, who have been
unable to secure public schemes, face closure, while
others have already shut down operations.
Donegal North East TD, Joe McHugh, who raised the
matter at the Dail recently, said the current system
favours up to ten of Ireland’s top contractors at
the expense of builders here. |
“Local companies are
being discriminated against under the current public
procurement system.
“There are no capital projects happening in
Inishowen. The only builder I met last week, who was
still employed, has to travel to work in Waterford.
“Builders are leaving Inishowen to find work
elsewhere and this is having an adverse effect on
local shops, bars and business. We have got to
change that,” McHugh added.
He called for an immediate reform of the system so
that local commerce can get moving again. |
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“I am proposing that
smaller firms should pay a bond of 25% of the total
cost of a public project, which they will lose if
something goes wrong with the job. The EU guidelines
also allow for positive discrimination towards local
firms,” he added.
Commenting on the issue Senator Pearse Doherty
added: “It is crucial that companies in Donegal are
able to apply for and construct State-funded
projects. This is of ever more importance now given
the high levels of unemployment in this county with
nearly 21,000 people on the Live Register.”
When contacted yesterday a spokesperson for Donegal
County Council said: “While it is generally accepted
that contractors who do not meet the minimum
turnover or other requirements will not have the
experience for the scale of the project being
tendered it may be an option for those smaller
contractors to form joint ventures or alliances with
larger contractors who do.” |
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