A MAYO Fine Gael TD has claimed a leading bank hired ‘black economy’ builders to carry out repairs to a housing estate in Mayo it has taken over.

Deputy John O’Mahony said the matter was brought to his attention by reputable contractors in the east of the county.

He stated: “The bank in question made funds available for an estate to be finished off.  But the work was done by unregistered builders in the black economy.

“I was shocked by the revelation. My view is that if the banks are being bailed out by the State, they had better ensure they employ registered builders to complete the work.”

Deputy O’Malley said building contractors in the county were also under pressure from firms paying their workers way below the rates that Irish companies pay.

He elaborated: “I spoke recently with a roofing contractor who lost a €100,000 contract because a contractor from outside the State could pay €20,000 less in wages.

“This has implications for our economy and the country because it means higher social welfare bills due to job losses.

“These type of issues have to be tackled if we are to save jobs and reduce the amount of money the government is paying out in dole.

“I realise the government’s jobs initiative is just a beginning. More is needed to provide new jobs and to protect the many jobs teetering on the edge.

“I have no other agenda but the protection of jobs,” he added.