Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

Question 81: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the average time, as of the end of April 2009, for payments to be made by her Department and each individual agency of her Department to outside businesses in respect of goods and services received; and if she will make a statement on the matter. [20869/09]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

Based on a review of payments made over the period 27th to 30th April, the average time taken for payments to be issued by my Department to outside businesses in respect of goods and services received was 11 days where a valid invoice was received and all necessary tax requirements were in order. The processing of payments by my Department's agencies is a day-to-day operational matter for the agencies concerned and I do not have details of the average time taken by them to make payments.

The Government has, this week, approved formal arrangements to reduce the period within which payments are made by Government Departments to their business suppliers. At present, the European Communities (Late Payment in Commercial Transactions) Regulations 2002 provide for late payment interest to be paid to suppliers where a purchaser does not pay for goods or services by the relevant payment date. In the absence of any agreed payment date, late payment interest falls due after 30 days has elapsed from the date of receipt of a valid invoice. The Government's objective is to reduce the payment period for Government Departments to 15 days with effect from 15th June 2009.

These arrangements should help ease cash flow difficulties for small business in the current economic climate. The arrangements will operate on an administrative basis and will not alter the contractual relationship between Departments and their suppliers or the period from which late payment interest applies. I am assessing the impact of extending the arrangements to the local authority, health and education sectors and specific proposals in relation to these sectors will be developed following the completion of the assessments.