More than 40 construction companies have entered into examinership or liquidation since the beginning of this year, it has been revealed.

With a total of 42 companies having failed so far in 2018, there has also been a 50% increase in the amount of firms leaving the Construction Industry Federation (CIF)

Sinn Fein spokesperson for Public Expenditure and Reform, Jonathan O'Brien TD, said the recent 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".

It is understood Sammon was badly affected by the collapse of UK industry services giant Carillion, with the Group's collapse now putting more than 200 jobs at risk.

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Deputy O'Brien said: "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."

Continuing, Mr O'Brien said 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," he said.

"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."

(LM/MH)