Niall Collins (Limerick County, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

306. To ask the Minister for Jobs, Enterprise and Innovation further to Parliamentary Question No. 279 of 16 June 2016, if the 15-day prompt payment rule is on a voluntary basis in both the public and non-public sectors; and if she will make a statement on the matter. [17887/16]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The 15 day prompt payment requirement applies to the public sector only. It does not apply to non-public sectors.

It is an administrative requirement based on a Government Decision, whereby all Government Departments, State Agencies and the wider Public Service are obliged to pay their suppliers within 15 days of receipt of a valid invoice. The 15 day prompt payment requirement does not affect the statutory requirement for late payment interest which only comes into effect 30 days after receipt of a valid invoice.

This administrative requirement was first introduced by Government on a voluntary basis in 2009 in respect of Central Government Departments only. In order to monitor the performance of each Government Department in meeting the 15 day deadline, my Department compiles and publishes composites reports on a quarterly basis.

In 2011, as part of the commitments in the EU/IMF Programme for Ireland, the 15 day prompt payment requirement was extended beyond central Government Departments and rolled out to the Health Service Executive, the Local Authorities, State Agencies, and all other Public Sector Bodies, (excluding Commercial Semi-State bodies).

As part of this extended arrangement, parent Departments are required to publish, on their respective websites, quarterly composite reports covering those bodies under their aegis. The individual bodies covered by this arrangement are also required to publish their own quarterly reports on their websites.

These reporting arrangements ensure that all Ministers can monitor the performance of their respective Departments, and those bodies under their aegis, and address any issues with non-compliance to the 15 day prompt payment requirement.

In respect of the non-public sectors, Government has introduced a number of prompt payment initiatives, including:

- The European Communities (Late Payment in Commercial Transactions) Regulations 2012 which came into effect on 16 March 2013. Under these Regulations, it is an implied term of every commercial transaction that where a purchaser does not pay for goods or services by the relevant payment date, the supplier shall be entitled to late payment interest, plus compensation costs, on the amount outstanding.

- 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.

These initiatives, in respect of both the public and non-public sectors, demonstrate the Government’s continuing drive and commitment to encourage a prompt payment culture in Ireland.