Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 97: To ask the Minister for Enterprise, Trade and Innovation the general level of compliance with the 15-day payment rule throughout Departments; the amount of late payment interest that has been incurred across all Departments in respect of non-payment within these 15 days since it came into effect in June 2009; and if he will make a statement on the matter. [17097/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
Link to this: Individually | In context

In accordance with the Government Decision of 19 May 2009 all central Government 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 my Department on their performance in meeting this target. The first returns by Departments covered the period 15 June 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 Enterprises Publications" link".

The ongoing publication of these composite returns by my Department provides clarity in relation to 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 within Departments across the three quarters, overall performance has been positive.

In relation to 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 Q4 figures and 97.8% for Q3.

· 10 Departments were paying in excess of 90% of invoices by value within 15 days;

· 4 Departments were paying in excess of 80% of invoices by value within 15 days and

· 1 Department had 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 whom are Small and Medium Enterprises. The new procedures and processes introduced are having an impact in assisting Irish SMEs cash flow in the current difficult economic environment and this development must be welcomed.

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.

The above arrangements operate on an administrative basis and do not alter the contractual relationship between Government Departments and their suppliers or the current late payments legislation. Therefore, no penalty interest applies in cases where payments are made outside the 15 day administrative period but within the normal 30 day period.