Albert Dolan (Galway East, Fianna Fail)
Link to this: Individually | In context

403. To ask the Minister for Enterprise, Trade and Employment if his Department has examined the impact of payment delays on community, voluntary, and non-profit organisations funded through State grants or reimbursements; and his views on whether such delays undermine service delivery, local employment, or the financial sustainability of these organisations. [62831/25]

Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context

My Department recognises the vital role that community, voluntary, and non-profit organisations play in delivering essential services, supporting vulnerable groups, and contributing to local economies across the country, and that many of these organisations rely on State grants or reimbursements to sustain their operations.

My Department's and the State bodies under its aegis strive to ensure that administrative processes are efficient and responsive, thus cutting out delays where possible. This is not to say that delays may occur for example where issues arise due to incomplete documentation or ensuring compliance and eligibility requirements are being met for specific schemes.

If the Deputy is aware of any instance where a particular body or organisation is having difficulties receiving funded payments from my Department or its State bodies, then please do contact me or my Department directly and we will do our utmost to ensure a speedy resolution.

Albert Dolan (Galway East, Fianna Fail)
Link to this: Individually | In context

404. To ask the Minister for Enterprise, Trade and Employment if consideration has been given to extending the 15-day prompt payment framework to include all categories of payments and reimbursements made by Departments and public bodies to community and voluntary organisations; and if he will make a statement on the matter. [62832/25]

Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context

The Government is committed to ensuring that payments to suppliers and service providers are made promptly, in line with the 15-day prompt payment requirement introduced to support cash flow and financial stability, particularly for small and medium-sized enterprises.

Prompt Payment obligations apply only to payments to suppliers on receipt of a valid invoices. These obligations are an extension of the legislation in this area (Late Payment in Commercial Transactions) Regulations 2012. A commercial transaction is “a transaction between undertakings, or between an undertaking and a public authority, which involves the delivery of goods, or the provision of services, for remuneration.”

In March this year Government agreed new measures to support and encourage effective delivery of the Public Sector’s obligation to pay its bills within 15 days. Officials from my Department have established a Prompt Payment Officer network with representation from each Government Department. The programme of work includes reviewing how improvements might be made to current processes including the system of reporting.

I acknowledge the importance of ensuring timely payments and reimbursements to community and voluntary organisations, many of which deliver essential services on behalf of the State and operate with limited financial flexibility.

However, it is important to note that payments to such organisations are generally made across a wide spectrum of Government departments and agencies, under specific programmes and schemes, each of which has defined eligibility criteria. In order to safeguard public funds and ensure compliance with these criteria, funding bodies must be afforded sufficient time to carry out appropriate due diligence, verify eligibility, and engage with applicants where necessary.

The introduction of a blanket 15-day prompt payment requirement could significantly constrain the ability of funding bodies to complete these necessary checks, potentially undermining the integrity of the funding process.

These funding arrangements differ in nature to contractually agreed payments for commercial transactions where the delivery of goods and services has been completed and for which a valid invoice has been submitted, against which the 15-day prompt payment framework may be more readily applied.