Dáil Éireann Debate, Tuesday - 24 March 2009
127 Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has carried out an analysis on the speed and efficiency of payments made by Government and public bodies to private businesses for the purchase of goods and services; and if she will make a statement on the matter. [10969/09]
Amharc ar fhreagra128 Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will impose a requirement that all Government and public bodies settle their bills with private suppliers and service providers within 14 days; and if she will make a statement on the matter. [10970/09]
Amharc ar fhreagraI propose to take Questions Nos. 127 and 128 together.
The Prompt Payment of Accounts Act 1997 requires Government Departments to report each year on details of their accounting practices. While I have not carried out an analysis on the speed and efficiency of payments made by Government Departments and public bodies to private businesses, an examination of the Annual Reports of Government Departments shows that, in general, the level of late payment interest incurred is small relative to the huge volume of payments made by Government Departments.
The Government is nevertheless very much aware of the cash flow difficulties currently being experienced by SMEs. In this regard, the Taoiseach announced on 5 March 2009, that the Government is introducing, on an administrative basis, a commitment to reduce the payment period by central Government Departments from 30 to 15 days and that an assessment will be completed by end-April of the impact of extending this to the local authority, health and education sectors.
My Department is currently working on the specifics of implementing these new arrangements and I will be bringing proposals in this regard, to Government shortly.
