KILDARE COUNTY Council has refused to accept a dispute conciliator's recommendation that it pay €8 million to a Co Kildare civil engineering firm for two projects, including roadworks carried out near Straffan in advance of the Ryder Cup at the K Club in 2006.

The council has been in dispute with Kilcullen-based Regan Civil Engineering over payment claims arising from its work on the Straffan road in Barberstown and road and drainage works in Rickardstown, near Newbridge.

The matter was referred to conciliator Dermot Roughan, who mediates in disputes over construction projects. He recommended that the council pay the firm €3.95 million for work carried out on the Straffan road and €3.195 million for the Rickardstown project. The payments exclude VAT, which would bring the total amount owed to the firm to €8 million.

The council has rejected Mr Roughan's recommendations and the dispute has since been referred to an arbitrator.

The council and a director of the firm, Bartley Regan, declined to comment. Dublin law firm A&L Goodbody is acting for the council.

Raising the issue at a meeting of the Oireachtas environment committee earlier this month, Fianna Fáil TD for Kildare North Michael Fitzpatrick said that, rather than spend more public money in pursuing this matter, the county council "should have met and discussed the issue with the civil engineering company following conciliation and prior to arbitration".

Mr Fitzpatrick said that "a few million euro" was substantial for a small firm. He added: "The committee should examine how local authorities handle this business. It is unfair that when small, struggling companies get a contract from a local authority they face problems when it comes to getting payment."

Regan employs 110 staff and subcontractors.