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Dáil Éireann Debate, Wednesday - 13 May 2020

Wednesday, 13 May 2020

Questions (438, 439)

Michael Fitzmaurice

Question:

438. Deputy Michael Fitzmaurice asked the Minister for Business, Enterprise and Innovation if her attention has been drawn to a Department, body, agency or publicly funded organisation which has not fully discharged a valid supplier invoice within 90 days of receipt in each of the years 2013 to 2019; and if so, the details of the scale of such behaviour. [4375/20]

View answer

Michael Fitzmaurice

Question:

439. Deputy Michael Fitzmaurice asked the Minister for Business, Enterprise and Innovation if her attention has been drawn to a Department, body, agency or publicly funded organisation which has not fully discharged large numbers of valid supplier invoices within 90 days of receipt in each of the years 2013 to 2019. [4376/20]

View answer

Written answers

I propose to take Questions Nos. 438 and 439 together.

The European Communities (Late Payment in Commercial Transactions) Regulations 2012 applies to all public authorities which include Government Departments and state bodies.

The Regulations provide that public authorities must pay for goods and services they procure within 30 days of receipt of a valid invoice or as specified in a contract (which cannot exceed 30 days). Where a Department or state body fails to comply with these regulations, that is if a payment is made later than 30 days, then they are in breach of these regulations an must automatically pay to the supplier compensation (a minimum of €40) and late payment interest for every day they are late. So, if a Government Department or state body does not pay a supplier for 90 days they must pay 60 days of late payment interest to that supplier, as well as the compensation payment. Departments and state bodies report on payments which have taken longer than 30 days. My Department does not receive information on the number of late days in excess of the 30-day limit.

The interest and compensation rates applied are in line with the Directive. Late payment interest is currently set at 8% (daily rate of 0.022%), on the outstanding balance of the payment. This rate of interest is in line with the requirements of the Directive and is also in line with interest rates applied by other Member States. The supplier is also entitled to compensation at a minimum rate of €40 in line with the Directive.

Compliance level among Government Departments is very strong. In 2018 2019 98% of all invoices received by Government Departments were paid within 30 days and did not incur late payment interest or compensation. In 2018 and 2019, 99% and 98% of all invoices received by the agencies of this Department were paid within 30 days and therefore did not incur late payment interest or compensation payments.

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