Dáil Éireann debate -
Wednesday, 15 Feb 1995

Vol. 449 No. 2

Written Answers. - Late Payment of Business Debt.

Desmond J. O'Malley

Question:

34 Mr. O'Malley asked the Minister for Enterprise and Employment if his attention has been drawn to the difficulties caused to the business sector, in particular, small businesses, in view of the delays in the payment of bills by public authorities; the plans, if any, he has to address this problem; and if he will make a statement on the matter. [3382/95]

Minister for Enterprise and Employment (Mr. R. Bruton)

I am aware of the difficulties in the cashflow, and indeed the possible survival, of businesses arising from the late payment of business debt. These difficulties, like most other business difficulties, are most acutely experienced in the small business sector.

The Government is committed to legislation on this problem and I have identified it within my Department as one of my main priorities for attention. However, the simple targeting of public bodies in a piece of "quick fix" legislation will not resolve all of these difficulties.

Much of the evidence concerning the problem of late payment is not statistical but anecdotal. That is not to deny the existence of a problem, but serves to indicate that simple solutions to a complex problem could cause more harm than good. It is significant that the Task Force on Small Business, in making detailed recommendations on this matter, admits in its report that data is scarce. My concern, therefore, is to examine thoroughly issues such as equity between public and private sectors, Exchequer implications and the feasibility and desirability of particular types of sanctions. Following this examination, I plan to bring forward workable legislation in the current year.