Written answers

Tuesday, 8 July 2014

Department of Jobs, Enterprise and Innovation

Prompt Payments

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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351. To ask the Minister for Jobs, Enterprise and Innovation the legislative action he will take to tackle the increasing problem of delayed payment of outstanding invoices by businesses. [29759/14]

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael)
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352. To ask the Minister for Jobs, Enterprise and Innovation if he will confirm the average time taken by Departments in addressing invoices from suppliers; if his Department is working on reducing the time taken to settle invoices, particularly when involving small and medium-sized enterprises; and if his Department is engaging with Departments and the agencies under the remit of each Department on this matter. [29593/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 351 and 352 together.

Prompt Payment of invoices is critical to the effective working of any economy and is an issue on which this Government places great emphasis.

My Department promotes improved payment practices and monitors on a quarterly basis the operation of the Prompt Payment of Accounts Act, 1997 and the Late Payment in Commercial Transactions Regulation, 2012.

In addition to legislating for prompt payments, since 2009, Central Government Departments have been improving their respective payment times and are now obliged to pay their suppliers within 15 days of receipt of a valid invoice. This 15 day prompt payment rule, introduced by Government on a voluntary basis, was extended to the wider Public Sector in March, 2011.

Departments are required to report quarterly to my Department on their performance in meeting this target. The latest set of composite figures available are for Quarter 1 2014 and show that 90% of Government payments, valued at €466m, were paid to suppliers within 15 days.

As part of this new extended arrangement, parent Departments are required to publish on their respective websites quarterly composite reports covering those bodies under their aegis. These comprehensive reporting arrangements ensure that Ministers can monitor the performance of the bodies under their aegis and address any issue with those bodies who are not meeting obligations in respect of prompt payments.

The Action Plan for Jobs contains further commitments by Government in the area of late payments. These include the introduction of a Prompt Payment Code of Conduct for business, currently being developed by business representative bodies in Ireland with the support of my Department and a national information campaign to raise awareness of the measures introduced both nationally and at EU level to combat late payments. These initiatives, together with the late payment legislation, demonstrate the Government’s continuing drive and commitment to encourage a prompt payment culture in Ireland.

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