Dáil Éireann díospóireacht -
Thursday, 25 Nov 1999

Vol. 511 No. 5

Written Answers. - Prompt Payments Legislation.

Richard Bruton

Ceist:

46 Mr. R. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the latest information available on late payment in the public and private sectors, including information on the building industry specifically where there are complaints of late payments; the plans, if any, she has to introduce measures to regulate late payment in the private sector on a similar basis to legislation in place for the public sector; her views on whether the present legal machinery for enforcement action by businesses to recover payments due is excessively costly and cumbersome; and if she will make a statement on the matter. [24810/99]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

Earlier this year, as part of its efforts to monitor the effectiveness of the Prompt Payment of Accounts Act, 1997, my Department contacted all Departments, some public bodies and the representative organisations of business. Essentially my Department was trying to ascertain the extent of the difference, if any, which the Act has made in speeding up payment practices. As a result of that exercise, my Department obtained very positive feedback on the operation and effectiveness of the Act. I am satisfied that the situation in relation to payments by the public sector has improved significantly since this legislation was put in place.

The Government is committed to extending the scope of the legislation to cover the private as well as the public sector. Agreement has been reached at Council level on a proposed EU draft Directive on Late Payment in commercial transactions, which will apply to both the public and private sectors. I envisage, therefore, that the prompt payment legislation will be extended to cover all sectors of the economy in due course. I consider that these developments will be of bene fit to all business in Ireland, particularly small business.

I am not aware of any specific complaints in the building sector as referred to in the question. As regards the machinery for enforcement, section 8 of the Act was intended to provide an easily accessible mechanism for the resolution of disputes through arbitration with the agreement of the parties. It is always open to parties in dispute to bring a case to the civil courts. I do not consider that the exercise of these options is either unduly costly or cumbersome.