Fiona O'Malley (Independent)

I am pleased the Minister of State, Deputy Billy Kelleher, is present to discuss this important issue. He was in the Chamber recently discussing the need to create jobs. The Minister of State's responsibility is for trade and commerce. However, we need to look at what is happening at home in terms of jobs. I was taken by ISME's report which was launched earlier in the week. It points the finger of responsibility at the Government. We should pay attention to the research conducted. ISME maintains that big business and State agencies are deliberately delaying payments. A total of 44% of companies are experiencing payment delays of more than three months. We need to examine the Government's responsibility in that regard. Government agencies are responsible for 23% of the delay in payments and multinationals for 28%.

We must find a solution. One of the calls ISME makes is for a 30 day mandatory credit period. Could that be provided so as to reassure small businesses? Cashflow is the lifeblood of any small industry and it needs to be protected. These are unusual times. A mandatory 30 day credit period should be considered. The Minister of State will be aware of the late payments legislation from 2002 which provides cover to a certain extent for this. Perhaps it was established on foot of a European Union directive rather than a locally motivated one. I welcome the fact that people carry out research on important matters. It is worthwhile examining how well the legislation has worked. If it is working then we have no problem. However, it is clear that we have a problem. The Minister of State is nodding in agreement. When the legislation was introduced the average delay in payments was 50 days. Unfortunately, in the most recent quarter the delay was 73 days. The good news is that the delay has reduced from 76 days but that is not good enough.

I heard from ISME about the situation faced by a relatively small company. It needs a credit facility of €40,000. The engineering company in question is owed hundreds of thousands of euro by its creditors. It has orders that would maintain 30 jobs but the credit facility is unavailable. We must do something about the employees. The managing director of the company is afraid he will have to let them go by Christmas. I know the Minister of State would do anything to keep those 30 high-end jobs. It is a viable business, but the company cannot get access to credit. That is the other problem it is facing. I accept the Government is trying to deal with the issue. In terms of solutions I wonder whether it is possible to consider the Small Claims Court. How effective can the law be? A small bakery that supplies a major supermarket which is not paying does not enjoy an even playing field; it is David v. Goliath. We must examine the possibility of having some of these claims looked at in the Small Claims Court if we can amend the legislation.

Since the introduction of the notification period by the Government to reduce the payment period, Departments have improved, but the State agencies, including the HSE, which control huge budgets should be included. It would be a simple but effective measure. There is evidence of improvement, but why are the State agencies allowed to remain outside the system?