Dáil Éireann Debate, Thursday - 5 March 2020
488. Deputy Michael Fitzmaurice asked the Minister for Business, Enterprise and Innovation the quantity of invoices which were paid 90 or more days after receipt by Departments or State bodies in each of the years from 2013 to 2019; and her views on whether the remedies for suppliers in the current prompt payment of accounts legislation in respect of payments after 90 days are appropriate. [3854/20]
Amharc ar fhreagraThe European Communities (Late Payment in Commercial Transactions) Regulations 2012 - SI 580 of 2012 gives legal effect to Directive 2011/7/EC of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions.
The 2012 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. (A commercial contract between an undertaking and a public authority cannot include a period for payment that exceeds 30 days). Failure to pay an invoice within 30 days will entitle the supplier to the automatic payment of late payment interest and a compensation payment.
It is a Government requirement that all central Government Departments and public sector bodies (excluding commercial Semi-State bodies) pay their suppliers within 15 calendar days of receipt of a valid invoice. This arrangement does not alter contractual relationships and does not change the legal position in relation to late payments.
My Department collates and publishes the composite quarterly returns by Central Government Departments of payments made to their suppliers within 15 and 30 days. As the deadline specified by the Regulation is 30 days, my Department does not collect information on payment of invoices after 90 days. In 2019, 98% of all invoices received by Government Departments were paid within 30 days. Therefore 2% were paid outside of the 30-day limit.
Government Departments are also required to publish the quarterly composite reports covering the bodies under their aegis. In 2019, 98% of invoices received by agencies of my Department were paid within the 30-day limit. 2% of invoices received were paid after 30 days.
With effect from 1 January 2020, the late payment interest rate is 8.00% per annum (that is based on the ECB rate as at 1 January 2020 of 0.00% plus the margin of 8%). This rate equates to a daily rate of 0.022%.
The table below outlines the compensation amounts payable.
|
Amount of Late Payment (invoice value) |
Compensation amount |
|
Not exceeding €1000 |
€40 |
|
Exceeding €1000 but not exceeding €10,000 |
€70 |
|
Exceeding €10,000 |
€100 |
