Dáil Éireann díospóireacht -
Thursday, 4 Jun 1998

Vol. 491 No. 7

Written Answers. - Prompt Payment of Accounts.

Nora Owen

Ceist:

132 Mrs. Owen asked the Minister for Defence if he has satisfied himself that the Prompt Payment of Accounts Act, 1997, which came into force on 1 January 1998, is being implemented by all relevant bodies and authorities under his aegis; if all systems are in place to ensure that the 45 day limit for payments is being met; if not, if interest is being paid; the complaints, if any, he has received regarding non-payment on time; if he has sought an interim report on the way in which the legislation is working during the last six months; and if he will make a statement on the matter. [13235/98]

Minister for Defence (Mr. M. Smith)

The Prompt Payment of Accounts Act, 1997, came into operation on 2 January 1998. The Act requires Government Departments, semi-State bodies, etc. to make payment to suppliers of goods and services:

—on or before the date on which payment is due under the terms of a written contract, or

—where there is no written contract, or if the written contract does not specify a payment date, within 45 days of receipt of the invoice or delivery of the goods or services, whichever is the later.

If payment is not made by the due date, penalty interest must be paid on the outstanding amount in respect of the period beginning on the date after the due date of payment and ending on the actual payment date. The interest rate is 0.0322 per cent per day or 11.75 per cent per annum.

Appropriate modifications were introduced to departmental and military financial and accounting systems and payment procedures to take account of the requirements imposed by the Act and to minimise the amount of penalty interest payable. To date, interest payments totalling £766 have been made. No complaints have been received in regard to late payments.

The operation of the Act is monitored by the Department on an ongoing basis.