Niall Collins (Limerick County, Fianna Fail)
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279. To ask the Minister for Jobs, Enterprise and Innovation the recourse and complaints process available to small businesses for outstanding payments due to them; and if she will make a statement on the matter. [16540/16]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Prompt Payment of invoices is critical to the effective working of any economy and is an issue on which this Government places great emphasis. Late payment is particularly damaging for small and medium-sized businesses, where any disruption to cash flow can mean the difference between solvency and bankruptcy.

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, ensuring 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.

Other initiatives introduced at national and EU level to combat this issue include:

- Launch of the Prompt Payment Code (PPC) portal in March of 2015. The PPC, which is hosted through an online portal – www.promptpayment.ie – is a new initiative aimed encouraging and promoting best practice between businesses and their suppliers, improving cash flow between businesses and driving a change in payment culture.

- Introduction in late 2015 of the Payments Forum. The role of the Forum is to support the delivery of the Prompt Payment Code (PPC) and also examine further initiatives to sustain a responsible payment culture in Ireland.

In Ireland, the PPC has specifically been developed by business for business. By signing up to the PPC companies are sending out a real signal that they will stick to their payment terms. For those with no pre-agreed payment terms, the PPC works to combat this. For suppliers, this means they can build stronger relationships with their customers, confident that they will be paid on time.

For the PPC to be successful, we need businesses to sign up. I would, therefore, urge all business, big and small, to support this important initiative and sign up to the PPC.

These initiatives, together with the late payment legislation, demonstrate the Government’s continuing drive and commitment to encourage a prompt payment culture in Ireland.