Vol. 514 No. 1
120 Mr. J. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans, if any, she has to extend prompt payment legislation to cover the private sector; and if the penalties for failure to comply with this legislation will be criminal or civil penalties. [3362/00]
I intend to bring forward proposals to extend prompt payment legislation to cover the private sector. An EU draft directive on late payments for commercial transactions is under discussion in the Council having completed its second reading before the European Parliament. The draft directive is intended to encourage good practice in the prompt settlement of commercial accounts and to act as a deterrent to payment default. However, it does provide that companies which do not pay their bills on time will be penalised through having to pay interest.
New measures, reflecting the intent of the draft directive, will be of significant benefit to small and medium enterprises. I do not envisage there will be any sanctions other than civil penalties involved.
