As the Deputy will be aware, the Prompt Payment of Accounts Act, 1997 stipulates that payment must be made to suppliers for the supply of goods or services on or before the date on which payment is due under the terms of a written contract. Where there is no written contract, or the written contract does not specify a payment date, payment must be made within 45 days of receipt of the invoice or delivery of the goods or services, whichever is the later.
The bodies operating under the aegis of my Department have informed me that they have implemented the Prompt Payment of Accounts Act, 1997 since its commencement, that they have appropriate systems in place to ensure compliance with the terms of the legislation and that interest is paid in any cases where payment is late under the terms of the Act. My Department has also fully implemented the Act and has a system in place which ensures that late payment is an infrequent occurrence and that interest is paid on late payments. No complaints have been received by me regarding late payments relating either to my Department or to any bodies which operate under its aegis.
Since the Act only came into effect on 2 January 1998 I have not sought a report on its operation to date. However, I would draw the Deputy's attention to sections 12 and 13 of the Act. Section 12 requires public bodies to include details of their payment practices in their annual reports. In so far as those public bodies which do not publish annual reports are concerned, that section provides for the preparation of an annual review of payment practices, a copy of which will be laid before each House of the Oireachtas. Section 13 provides that an auditor auditing the affairs of a public body shall report on whether, in all material respects, the purchaser has complied with the provisions of the Act.
