Dáil Éireann Debate, Wednesday - 3 April 2019
132. Deputy Stephen Donnelly asked the Minister for Business, Enterprise and Innovation the status of the implementation of the prompt payment code across the HSE; if it is being delayed; if so, the reason for the delay; and if she will make a statement on the matter. [15664/19]
View answerUnder the European Late Payment in Commercial Transactions Regulations public authorities must pay for the goods or services they procure within 30 calendar days of receipt of a valid invoice. Failure to do so incurs late payment interest. In addition to late payment interest, a supplier is entitled to obtain a minimum fixed amount of €40 as compensation for recovery costs. With the development of the Prompt Payment Code, Ireland went one step further, requiring public authorities to pay for goods and services within 15 days.
In 2017 formal arrangements were put in place to augment the existing operation of Prompt Payments Code in line with the Government’s commitment to address the issue of late payment, to provide cash flow certainty to small business and to aid the creation and maintenance of jobs. This included a commitment that public sector bodies would pay late payment interest and compensation costs automatically after 30 days without an obligation on the provider to request such a payment.
At that time, it was agreed to grant the Health Service Executive (HSE) a derogation for a period of two years from the commitment to automatic payment of compensation costs. The purpose of this derogation was to enable the reconfiguration of the HSE financial systems.
This derogation could not and did not exclude the HSE from its statutory obligation to pay, on foot of a claim from a supplier, late payment interest and compensation costs in cases where payment has been made outside the statutory limit. The derogation relates only to automatic payment of interest.
Based on a business case submitted by the HSE outlining the progress it has already made, and its commitment for future progress in developing standard payment processes, the Government has decided to grant approval for the extension of the derogation by a further two years.
The HSE remains obliged to engage with the reporting requirements under Prompt Payments Code and to report to the Department of Health on its payment performance.
