Conor Lenihan (Dublin South West, Fianna Fail)

In accordance with the Government's decision of 19 May 2009, all Departments are required to pay their business suppliers within 15 days of receipt of a valid invoice. Departments are also required to report quarterly to the Department of Enterprise, Trade and Innovation on their performance in meeting the target.

The first returns by Departments covered 15 June 2009 to 30 September 2009 and were published on 30 December 2009. The second set of returns for the last quarter of 2009 were published on 5 March 2010. The third set of returns for the first quarter of 2010 are available from today on my Department's website under the small and medium-sized enterprises publications link.

The ongoing publication of these composite returns by the Department provides clarity on the performance of individual Departments in meeting the terms of the Government decision. While there is some variation between the performance of individual Departments and fluctuations across the three quarters, overall performance has been positive.

In the first quarter of 2010, the returns show that in value terms, Departments paid 96.7% of invoices within 15 days compared with 97.9% for fourth quarter figures and 97.8% for the third quarter; ten Departments paid in excess of 90% of invoices by value within 15 days; four Departments paid in excess of 80% of invoices by value within 15 days; and one Department paid 79% of their invoices by value within 15 days.

Departments are playing their respective parts in assisting the cash flow of their suppliers, many of which are small and medium-sized enterprises, SMEs. The new procedures and processes introduced are having an impact in assisting the cashflow of SMEs in the current difficult economic environment, a welcome development.

It is the responsibility of each Department to meet its obligations under the terms of the Government decision. Any businesses that experience difficulties in receiving payment on foot of valid invoices within 15 days should contact the contracting Department to resolve their difficulties. It is incumbent on those Departments whose performance is lagging behind to improve their payments profile over the coming quarters.

The Minister has already indicated his intention to bring forward proposals to shortening public sector payment periods in areas beyond central Departments.

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