HC Deb 14 June 1995 vol 261 cc789-90
13. Mr. Cummings

To ask the President of the Board of Trade if he will estimate the amount of money owed by his Department to suppliers in 1993 and 1994 which remained unpaid after 30 days from the presentation of invoice. [26815]

Mr. Ian Taylor

The Department does not keep estimates of amounts outstanding. The percentage of invoices paid, within either 30 days or the agreed credit period, was 90 per cent. in 1993–94. On more rigorous Treasury guidelines, the figure for 1994–95 was 84 per cent. The target for 1995–96 is 95 per cent. and payment procedures are being improved, where necessary, to achieve this.

Mr. Cummings

That was a rather disappointing reply. Does the Minister agree with the former consumer affairs Minister, Baroness Denton, that when goods are supplied and not paid for, it is basically theft? Does he also agree with the colleague who stated in a Department of Trade and Industry press release that people who are owed money should contact the chairmen of the respective offending companies, even at home, and go along and collect the money? If that is the case, can we look forward to the Minister's home number being made public?

Mr. Taylor

If it helps the hon. Gentleman, he can have my Internet number as well. The Department did not do very well in 1994–95. We need to pull up our socks, which is what I said in my answer. We are targeting 95 per cent. payment and have put the systems in place. In a recent meeting with the CBI in the north-east, we learnt that it was aware that some of the targets that we had set ourselves in the competitiveness White Paper were extremely welcome. The CBI is working on further information. The question whether the law should come into it is highly contested, even among smaller businesses. We have to find a way to shame people into making payments. The Government do not want to be shamed and will, therefore, be a good payer.

Mr. Wilkinson

Is not late payment of invoices one of the prime causes of the failure of small businesses? Is it not welcome that the Department recognises the importance of the DTI setting a lead in the matter? Can the Minister move his target onward to 99 or 100 per cent. at the earliest possible date?

Mr. Taylor

Targets are set and then need to be beaten. I agree with my hon. Friend that, if one sets a target of 95 per cent. and achieves it, one then needs to do better. The problem of late payment is complicated. Many surveys show that too many companies rely on trade credit, so the question is one of the overall financing of many of our companies rather than of late payment, which is often due to the failure to agree clear contractual terms between two commercial parties. Government Departments must set an example and do better and the targets set by the DTI should be emulated throughout Government.