HL Deb 10 December 1970 vol 313 cc1031-2
THE VISCOUNT HANWORTH

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether they are aware of the effect which the policy of some Ministries, large firms and local authorities in delaying payment for work done is having on small businesses; and whether they can take some action to discourage this practice.]

THE LORD PRIVY SEAL (EARL JELLICOE)

My Lords, I am not aware that Government Departments are delaying payment of accounts; such action would be directly contrary to instructions and there is no evidence of it. I am also not aware that local authorities in general delay payment of their accounts; the importance of prompt payments has been pointed out to them from time to time. I am not in a position to answer for private firms; I do not think that Government intervention in this area would be appropriate.

VISCOUNT HANWORTH

My Lords, while thanking the Minister for his reply, may I ask whether he would be willing to make some further investigation into the matter, because I can assure him that there is considerable feeling on the subject? I would mention that the Board of Trade have an extremely bad reputation in this respect. Secondly, I would ask him whether he would not agree that the competitiveness of our small firms is a vital thing in the future of our industry, and that, with the credit squeeze, if bills are not paid promptly it inevitably means that many of them will go to the wall?

EARL JELLICOE

My Lords, I would entirely agree with what the noble Viscount has said about the importance of small businesses in this country. If he has evidence of any particular delays by Government Departments in discharging their debts and can bring them to my attention, I will gladly have them investigated.

VISCOUNT HANWORTH

My Lords, may I thank the Minister very much for that reply.

LORD INGLEWOOD

My Lords, may I ask the noble Earl whether his Answer implies that he is under the impression that there are no delays in dealing with negotiations and settlements by the Inland Revenue?

LORD DIAMOND

My Lords, is the noble Earl aware of the fact—I am sure he is—that this is a frequently expressed complaint; that in recent times it was expressed by the C.B.I, on behalf of industry, that it was examined in full detail and that nothing to support the charges was found?

EARL JELLICOE

My Lords, curiously enough, I have a brief precisely to that effect.

LORD SHACKLETON

My Lords, I wonder if I might ask the noble Earl whether we are to have the pleasure of the attendance of most of his Party today, whether they have mistaken the date of the Recess, or whether at the moment they are succeeding in putting some of Mr. Barber's ideas right.

EARL JELLICOE

My Lords, in reply to the noble Lord the Leader of the Opposition, I am at a loss to know how his supplementary arises from the Question put to me.

LORD SHACKLETON

My Lords, if I may say so to the noble Earl, it does not arise. It is a question to the Leader of the House who, I trust, looks after us all, and I am wondering whether he is losing control of some of his flock.

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