Taoiseach raises pay problems for firms with Polish premier

Taoiseach Enda Kenny has raised the issue of serious delays in payment encountered by three Irish construction firms in Poland with the country's premier, Donald Tusk.

Mr Kenny's intervention, at an EU summit in Brussels, comes only days after Siac Construction secured court protection in Dublin to prepare a survival scheme.

Siac attributes some of its trouble to its withdrawal from a major Polish project, which triggered cash-flow problems. The company and others have taken action in the Polish courts and the value of Siac’s claim is about €130 million.

In a statement on Wednesday, Siac said its decision to seek the appointment of an interim examiner “comes as a result of difficulties facing the company following exposure on a large road project in Poland and increasing uncertainty over the payment for works done on projects in Ireland”.

'Positive outcome'
As the summit finished yesterday, Mr Kenny made a point of telling reporters that he had spoken with Mr Tusk directly about the matter and had raised it before with him. The Taoiseach now anticipates a "positive outcome" before the end the year from the Government's engagement with the Polish authorities.

"We have a problem in Ireland. There are three major construction firms: Sisk and Roadbridge and Siac. Siac are now under a court examinership," Mr Kenny said. "This is because of the fact that they're doing major construction in Poland and they've been in difficulty in receiving their payments."

Several thousand jobs were at stake in Ireland over the matter, said the Taoiseach. He has asked Minister for State for Europe Paschal Donohoe to liaise on the matter with his Polish counterpart.

"I've asked Paschal to take up this now following my handing of a letter this morning to prime minister Tusk. This is an area of concern to Ireland," Mr Kenny said. "I also made the point that it's about the reputation of Poland as well in the sense of the European Commission now being involved because there are structural funds involved in these major pieces of construction."

Siac’s found itself in dispute with a Polish roads’ authority after its withdrawal from a €400 million road project.

Sources have suggested such problems would weaken the company’s hand in any talks over payments it is due.

Nine Siac entities are involved in the examinership. They employ a total of 250 people and the company has told the Dublin courts they are “in a clear position of insolvency”.

The court heard the companies owe their banks some €42 million. Siac’s turnover has dropped from €265 million in 2008 to €113 million, the court petition stated.