Dáil Éireann Debate, Tuesday - 2 February 2010
124 Deputy Eamon Gilmore asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the fact that a number of Government Departments are falling short of meeting the targets set by her that suppliers would be paid within 15 days of the receipt of an invoice; the steps she will take to ensure greater compliance with the target set; and if she will make a statement on the matter. [4830/10]
View answerOn foot of the Government Decision of 19 May 2009 regarding the reduction of payment periods by Government Departments to 15 days, Departments are required to report quarterly to my Department on their performance in meeting this target. The first returns by Departments covered the period 15 June to 30 September 2009. The information supplied has been collated by my Department and published by me so that there is transparency in the overall performance across Departments.
These first returns show:
A total of 62,860 payments were made by Departments in the above period amounting to €1.92bn;
49,890 payments totalling approximately €1.76bn were paid within 15 days. These payments represent 80% of total payments made by Departments; in value terms 91% were paid within 15 days;
There was however, some variation between the performances of individual Departments, 5 Departments were paying in excess of 90% of invoices within 15 days, a further 7 Departments were paying in excess of 83% of invoices within 15 days, while the remaining three had paid almost 50% of their payments within 15 days;
9 Departments had paid between 98% and 100% of their invoices within 30 days a further 5 had paid between 93% and 96% of their invoices within 30 days, while the remaining Department had paid 87% of invoices within 30 days.
It is evident therefore, from the returns received, that, overall, Departments are playing their parts in assisting the cash flow of their suppliers, many of whom are Small and Medium Enterprises. The new procedures and processes introduced are having an impact in assisting Irish SMEs cash flow in the current difficult economic environment and this development must be welcomed.
It is the responsibility of each Department to meet its obligations under the terms of the Government Decision. Businesses that experience difficulties in receiving payment on foot of valid invoices within 15 days should contact the contracting Department to resolve their difficulties.
While the first set of returns shows that some Departments have not yet fully complied with their requirements, I would anticipate that subsequent returns should show an improvement in the situation. My Department will continue to collate future quarterly returns and I will continue to publish the information provided.
