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Dáil Éireann debate -
Thursday, 4 Jun 1998

Vol. 491 No. 7

Written Answers. - Prompt Payment of Accounts.

Nora Owen

Question:

169 Mrs. Owen asked the Minister for Health and Children if he has satisfied himself that the Prompt Payment of Accounts Act, 1997, which came into force on 1 January 1998, is being implemented by all relevant bodies and authorities under his aegis; if all systems are in place to ensure that the 45 day limit for payments is being met; if not, if interest is being paid; the complaints, if any, he has received regarding non-payment on time; if he has sought an interim report on the way in which the legislation is working during the last six months; and if he will make a statement on the matter. [13238/98]

Prior to this legislation coming into place, my Department circulated all the relevant details to the agencies under my aegis and requested them to make all necessary arrangements to fully implement this legislation. In addition, when advising agencies of the funding allocations for 1998, my Department again advised agencies of their obligations in regard to prompt payments. In the context of agreeing with agencies their cash drawdown profiles for 1998, specific provision was made to increase cash drawdowns in January of 1998 to allow for the additional cash flows necessary due to agencies moving from a 45 day average to a 45 day limit. The arrangements put in place fully supported health agencies in meeting their obligations under the legislation.

In the matters of non-compliance, payment of interest and receipt of complaints regarding non-payment on time, I am not aware of any major difficulty in the health sector regarding the operation of the legislation. In the matter of complaints, my Department has received just three, none of which related to non-payment within the 45 day limit, all of which are in the process of being dealt with.

In relation to interest payments, if any, incurred by agencies, the legislation provides for the issue of guidelines by the Minister of Enterprise, Trade and Employment on disclosure by relevant agencies of their payment practices in their annual accounts/reports. There are no arrangements for the provision of interim reports. The day-to-day operational compliance is a matter for individual agencies. However, my Department has assisted, and will continue to assist, health agencies in meeting their obligations so if problems emerge they will be kept to a minimum.

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