Fianna Fáil ‘loses friends’ over contracts move

THE Government’s decision to force through fixed price tendering for massive public sector construction contracts has lost Fianna Fáil “a few friends”, Taoiseach Bertie Ahern said yesterday.

Delivering the keynote address to the IMI’s National Managemenmt Conference, the Taoiseach said the Government is reforming public sector construction contracts.

In an unscripted aside he said: “This has lost us some friends” - a clear reference to the traditional support Fianna Fáil has received from the construction sector in the past.

“Projects will be tendered competitively on the basis of a fixed price, lump sum contract. Appropriate construction risks will be identified and transferred to contractors.

“Variations or ‘extras’ will be limited to the greatest extent possible. There are some issues to be resolved but I am satisfied that these changes are necessary and that they will be implemented sensibly,” he said.

He also promised the business community to remove as much red tape as possible, saying it was a matter of striking the right balance in Government’s regulatory policies.

“Government must promote and protect the welfare of workers, citizens and businesses. At the same time it must ensure that regulation is not imposing unjustified restrictions on competition or disproportionate administrative burdens.”

Mr Ahern disclosed that, arising from the Government’s commitment to reform, his department is commissioning a study of business attitudes to regulation.

“This should help to identify unnecessary, ineffective or overly burdensome regulations or bodies of regulation. It will complement the work of the Business Regulation Forum, which has recently advertised for submissions in the national media.”

The Taoiseach said the business community has a legitimate and growing interest in delivering services that have previously been regarded as the preserve of the Public Service.

“I do not have any ideological hang ups on this issue. However, I firmly believe the Public Service needs to demonstrate that it gives value in those areas of service delivery where alternative channels now exist.”

The Taoiseach said he wants to emphasise that social partnership is not just about pay, or about problem solving in a narrow, fix-it way.

“My direct experience of the process convinces me that it is the secret ingredient in Ireland’s success story. It has helped our people to understand and manage the dramatic changes through which we have come. It has provided a basis for confidence and security in the face of very rapid change and restructuring.”

The Taoiseach said that the dramatic changes in the labour market over the past few years represent an even greater challenge, as much social and political, as economic.

“Societies need institutions to manage change and dislocation. I firmly believe that this, and other key challenges, can be met through our partnership process. I commend all those who are making great efforts to craft a new agreement to the benefit of us all,” he said.