Vol. 553 No. 2
155 Ms Shortall asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will consider introducing punitive measures against businesses who persistently fail to pay invoices promptly; if a 30 day rule could be introduced; and if she will make a statement on the matter. [13813/02]
I propose to make regulations shortly under the European Communities Act, 1972 to implement Directive 2000/35/EEC of the European Parliament and of the Council on combating late payment in commercial transactions. The deadline for implementation of the directive is 8 August 2002 and the regulations will come into operation on that date. Late payment of debt is harmful to companies and the intention of this legislation is to promote a culture of prompt payment.
Ireland was one of the first countries in the EU to introduce legislation in this area in 1997. The Prompt Payment of Accounts Act which applies to the public sector only has been in operation for the past five years. The new regulations will apply to all commercial transactions in the public and private sectors. Under the provisions of this new legislation a payment will be regarded as being late if it is unpaid 30 days after the receipt of an invoice or goods unless otherwise specified in a contract. Penalty interest will be payable on debts paid after the relevant payment period.
Question No. 156 answered with Question No. 93.
