(a) I am aware that some elements of the health service have been experiencing from time to time cash flow difficulties which has resulted in longer than normal trading terms being applied in some health boards.
I am equally aware however that where these difficulties have existed, health boards have recognised the particular needs of the smaller suppliers who are generally locally based.
However, it is the responsibility of each agency to manage its cash and credit with its operational needs and within approved expenditure levels. The timing of payments to suppliers of goods and services is a matter for local management to decide.
(b) I do not accept that many firms are refusing to tender for supply contracts as suggested. Obviously when boards are in a position to negotiate cash discounts they obtain supplies on a more competitive basis. This is not to say, however, that when no such discounts are availed of inferior goods are purchased.
My Department is currently examining the working capital requirements of the health services to see what improvements can be made by the Department and its agencies, including health boards, in the management of the cash available.
In any event I am very conscious of the need for suppliers to the service to be paid as quickly as possible both from the point of view of viability in regard to small firms and the necessity for the service to achieve greater value for money in purchasing.
