Harney says Gama was investigated twice after complaints

The Tánaiste has denied that she failed to have Turkish company Gama Construction investigated when she was minister for enterprise and employment. Mary Harney told the Dáil yesterday that complaints about the com-pany's work practices were investigated at least twice.

She released a report by an unnamed senior official of the department's work permits section which said the company had "no problems with compliance" in 2003.

It has emerged that millions of euro belonging to Gama's Turkish workforce went into Dutch bank accounts. The Garda and Revenue Commissioners have been asked to investigate its affairs, and a department inspector's report has been drawn up but not yet published.

"It is not correct to state nothing was done as the complaints were investigated," Ms Harney told Labour leader Pat Rabbitte. She denied trying to blame her officials.

She continued: "The Minister for Enterprise, Trade and Employment will publish the labour inspector's report if and when he can.

"He has given a commitment that a debate will be held in the House. Clearly, if there is any legislative gap on this matter, it will be rectified."

The departmental report released by Ms Harney is dismissive of complaints then made against Gama, which it variously attributed to "inter-union rivalry" and "a disappointed Irish rival contractor".

Writing in October 2003, the official said Gama had met the department's requirements on work permits.

Construction industry unions were kept informed about the department's policy of allowing overseas contractors working on important infrastructural projects to bring in foreign employees.

"All agreed" that early delivery of the infrastructure programme was the best guarantee for future full employment for their members.

"The unions have proved very accommodating, and have not sought to place obstacles in the way of policy, nor have they ever sought any form of veto. Their members are still doing very well in a very buoyant construction sector," the official wrote.

According to the report, allegations about Gama came from one source, Batu, the bricklayers' union, and were related to an inter-union dispute. Neither the plasterers' union, the carpenters' union nor the painters' union had any problems with the company.

Accusing Batu of orchestrating a "letter-writing campaign", the official suggested the plasterers may have "priced themselves out of the market", with brick being replaced by other materials in many buildings.

The report said complaints about pay levels on Gama's first Irish project came from a disappointed rival.

"This too led to a concerted letter-writing campaign to public representatives and, on investigation by this department, the allegations were found to be without substance.

"Sweeping allegations from one source, unsupported by evidence, and which were not made until the outbreak of the inter-union dispute, do not, I suggest, provide a sufficient basis for any such investigation."

Batu official Brendan O'Sullivan last night confirmed that the union had informed department officials that Gama workers were being paid less than the building industry rate and less than the minimum wage.