James Breen (Clare, Independent)
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Question 271: To ask the Minister for Enterprise, Trade and Employment if he will instigate an investigation into the management and operation of a construction site (details supplied); and if he will make a statement on the matter. [22422/06]

Micheál Martin (Cork South Central, Fianna Fail)
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With regard to the issue of stranded cattle I wish to inform the Deputy that it is not within the remit of the Department of Enterprise, Trade and Employment to undertake an investigation.

The issue of late payments in respect of sub-contractors is addressed by the European Communities (Late Payment in Commercial Transactions) Regulations 2002 (S.I. No. 388 of 2002). These Regulations, which came into operation on the August 7th 2002, apply to all commercial transactions with the following exceptions:

∙Contracts made before August 7th 2002

∙Claims for payment of late interest of less than €5

∙Transactions with consumers

∙Debts that may be subject to legislation other than these Regulations.

In accordance with these Regulations, it is an implied term of every commercial transaction that where a purchaser does not pay for goods or services by the relevant payment date, the supplier shall be entitled to interest ("late payment interest") on the amount outstanding. The current interest rate applicable is 9.25% per annum or 0.0253% per day. This rate is set as at January 1st and July 1st each year at a rate of 7 percentage points above the European Central Bank interest rate on its most recent main re-financing operation. In the absence of any agreed payment date between the parties, late payment interest falls due after 30 days have elapsed.

In addition, the use of terms that are grossly unfair may be unenforceable and such terms may be challenged in Court on the basis of criteria specified in the Regulations. Organisations representing small and medium sized enterprises may also challenge any terms that they feel breach the Regulations.