Albert Dolan (Galway East, Fianna Fail)
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374. To ask the Minister for Public Expenditure and Reform if he will consider requiring all public bodies to publish, both in their annual reports and on their websites, a statement of compliance with prompt payment timelines, including data on payments to community, voluntary, and non-profit organisations, to improve transparency and accountability in the payment process. [62833/25]

Jack Chambers (Dublin West, Fianna Fail)
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As the Deputy may be aware, payment of invoices is governed by the 1997 Prompt Payment of Accounts Act. Prompt payment of invoices is critical to the effective working of any economy.

The 1997 Prompt Payment Act places a clear onus on all Central Government Departments, the Health Service Executive, the local authorities and all other public sector bodies (excluding Commercial Semi-State bodies) to pay their suppliers on time. At that time (1997) the Department of Finance set the timeframe for payment of suppliers to within 45 days of receipt of an invoice or date of supply (Circular 30/1997). In 2009, Government approved formal arrangements to reduce the payment period to 15 days to assist the cash flow of businesses.

The issue of late payment in commercial transactions is governed by the European Communities (Late Payment in Commercial Transactions) Directive. Statutory Instrument 580 of 2012, which took effect on 16 March 2013, transposes EU Directive 2011/7/EU on Combating Late Payment in Commercial Transactions and set the timeframe for payment of suppliers to 30 calendar days of receipt of an invoice or date of supply.

Section 12 of the 1997 Prompt Payment of Accounts Act requires public bodies to publish a report each year about their payment practices. The report must be included in the annual report of the body concerned or, if no annual report is published, the payment practices report must be sent by the body to the Department of Enterprise, Tourism and Employment for transmission to the Oireachtas. In 2009 the publication of public bodies payment practices was further enhanced by the introduction of the requirement that all public bodies, subject to the Prompt Payment Act, publish on their respective websites their quarterly payment performance reports. In addition, Government Departments are also required to publish the quarterly composite reports covering the bodies under their aegis.

These reporting arrangements are intended to provide members of the public, including potential suppliers, with information about payment practices in individual bodies that are subject to the 1997 Prompt Payment Act.

The 1997 Prompt Payment Act provides for the Minister for Enterprise, Tourism and Employment to prescribe the detail in relation to disclosures of payment practices of purchases to be included in the annual report and the Act also provides for that Minister to amend the list of purchasers subject to the Act.

My Department will forward your request for extension to the range of bodies covered by the Act and the detail to be published in relation to compliance with the Act, to the Minister for Enterprise, Tourism and Employment for his consideration.