Michael Fitzmaurice (Roscommon-Galway, Independent)
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483. To ask the Minister for Jobs, Enterprise and Innovation the auditing and oversight mechanisms in place in her Department to ensure that standard processes are in place across each Department and State body to ensure that suppliers' invoices are processed in full compliance with the prompt payment of accounts legislation. [3847/20]

Michael Fitzmaurice (Roscommon-Galway, Independent)
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484. To ask the Minister for Jobs, Enterprise and Innovation the international auditing standards, such as ISO 9001, in place to ensure that standard processes are in place across each Department and State body to ensure that all suppliers' invoices are processed in compliance with the prompt payment of accounts legislation. [3848/20]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 483 and 484 together.

The European Communities (Late Payment in Commercial Transactions) Regulations 2012 - SI 580 of 2012 gives legal effect to Directive 2011/7/EC of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions. 

The 2012 Regulations provide that public authorities must pay for goods and services they procure within 30 days of receipt of a valid invoice or as specified in a contract (which cannot exceed 30 days). Failure to do so incurs the automatic payment of interest and compensation. Details of the value and number of Departments’ payments made within 30 and 15 days are published on a quarterly basis.

It is the responsibility of each Government Department and state body to ensure its systems and processes are in order to meet obligations under the Late Payment in Commercial Transactions Regulations.   

The Department of Public Expenditure and Reform issues an annual Circular (for example Circular 27/2019: Requirements for Appropriation Accounts 2019) which sets out the requirements to be followed by Government Departments in relation to the preparation of their Appropriation Accounts and specifically provides that in the case of interest and compensation under the Late Payments in Commercial Transactions Regulations, 2012 information must be included in a Department’s Account where the total of interest payments due was €10,000 or more, or an individual payment was €10,000 or more.

The Appropriation Accounts of Departments are subject to audit by the Comptroller and Auditor General.  The external audit of non-commercial state bodies is also carried out by the Comptroller and Auditor General.

All Departments must publish their compliance figures on a quarterly basis. In 2018 and 2019 respectively, 98% and 98% of all invoices received by Government Departments were paid within 30 days and did not incur late payment interest or compensation.

All Departments must also publish the compliance levels of the bodies under their aegis on their respective websites.  In 2018 and 2019, 99% and 98% of all invoices received by the agencies of this Department were paid within 30 days and therefore did not incur late payment interest or compensation payments.  

These figures indicate strong compliance with statutory obligations under the 2012 Regulations.

Michael Fitzmaurice (Roscommon-Galway, Independent)
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487. To ask the Minister for Jobs, Enterprise and Innovation her views on the compliance levels here and the possible level of exposure facing Ireland in respect of a recent court case (details supplied). [3853/20]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Late payment in commercial transactions is governed by the European Communities (Late Payment in Commercial Transactions) Regulations 2012 - SI 580 of 2012 which give legal effect to Directive 2011/7/EC of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions. 

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 on the amount outstanding.

The 2012 Regulations provide that public authorities must pay for goods and services they procure within 30 days of receipt of a valid invoice or as specified in a contract (which cannot exceed 30 days). Failure to do so incurs late payment interest.

Compliance levels of Government Departments and public bodies with the Regulation are excellent. In the latest reporting period, Q4 of 2019, 98% of invoices received by Departments were paid within 30 days. For the state bodies under the aegis of my Department, 99% of invoices were paid within 30 days. Individual Departments are responsible for reporting on the compliance levels of bodies under their aegis.

In line with its commitment to address the issue of late payments the Irish Government has gone a step further than the strict requirement of the Regulation by requiring public authorities to pay for goods and services within 15 days. Compliance with the 15-day requirement has also been strong among Government Departments with 83% paying within 15 days (in the latest reporting period) and 92% of invoices received by agencies under the remit of my Department paying within 15 days.

To further encourage compliance, each Department is required to compile and publish their own quarterly payment performance reports as well as those of the bodies under their remit on their websites.

In addition, in 2017 a commitment was made that public sector bodies would pay late payment interest and compensation costs (minimum of €40) automatically after 30 days without an obligation on the provider to request such a payment.

The various measures undertaken by my Department and across Government to ensure the terms of the Regulation have been observed have gone beyond mere transposition of the Directive and are proving very successful as is evident from the high level of compliance reported.

Michael Fitzmaurice (Roscommon-Galway, Independent)
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488. To ask the Minister for Jobs, Enterprise and Innovation the quantity of invoices which were paid 90 plus days after receipt by Departments or State bodies in each of the years 2013 to 2019; and her views on whether the remedies for suppliers in the current prompt payment of accounts legislation in respect to payments after 90 days are appropriate. [3854/20]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The European Communities (Late Payment in Commercial Transactions) Regulations 2012 - SI 580 of 2012 gives legal effect to Directive 2011/7/EC of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions. 

The 2012 Regulations provide that public authorities must pay for goods and services they procure within 30 days of receipt of a valid invoice or as specified in a contract. (A commercial contract between an undertaking and a public authority cannot include a period for payment that exceeds 30 days). Failure to pay an invoice within 30 days will entitle the supplier to the automatic payment of late payment interest and a compensation payment.

It is a Government requirement that all central Government Departments and public sector bodies (excluding commercial Semi-State bodies) pay their suppliers within 15 calendar days of receipt of a valid invoice. This arrangement does not alter contractual relationships and does not change the legal position in relation to late payments.

My Department collates and publishes the composite quarterly returns by Central Government Departments of payments made to their suppliers within 15 and 30 days. As the deadline specified by the Regulation is 30 days, my Department does not collect information on payment of invoices after 90 days.  In 2019, 98% of all invoices received by Government Departments were paid within 30 days. Therefore 2% were paid outside of the 30-day limit.

Government Departments are also required to publish the quarterly composite reports covering the bodies under their aegis. In 2019, 98% of invoices received by agencies of my Department were paid within the 30-day limit. 2% of invoices received were paid after 30 days.

With effect from 1 January 2020, the late payment interest rate is 8.00% per annum (that is based on the ECB rate as at 1 January 2020 of 0.00% plus the margin of 8%). This rate equates to a daily rate of 0.022%.

The table below outlines the compensation amounts payable.