Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 119: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the amount of interest paid by her in respect of the late payments for goods or services contracted by her Department for the past five years to date in 2009; the steps being taken to ensure that money is appropriately spent and that payments are made on time; and if she will make a statement on the matter. [25861/09]

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

Under the European Communities (Late Payment in Commercial Transactions) Regulations 2002, where a purchaser does not pay for goods or services by the relevant payment date in a commercial transaction, the supplier is entitled to interest on the amount outstanding. 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 amount of interest paid by my Department under Prompt Payment legislation in each of the last five calendar years and to date in 2009 was as follows:

Notwithstanding the provisions in the Prompt Payment legislation, the Government has decided to reduce the payment period by central Government Departments to their business suppliers to 15 days with effect from 15th June 2009. These arrangements will apply on an administrative basis and will not alter the contractual arrangements between Departments and their suppliers, or the current Prompt Payments legislation. However, all Departments will be required to report to my Department on a quarterly basis on the manner in which they have complied with the Government commitment.

As a result of the measures introduced by the Government, Departments will now give greater priority to making timely payments and will ensure that suppliers are aware of how they can assist the process by meeting the requirements of Departments in relation to the submission of invoices.