§ Sir Michael MarshallTo ask the Secretary of State for Defence what policy guidelines are currently in place within his Department and the purchasing organisations for which he has responsibility in respect of the prompt payment of commercial debt, particularly as it relates to small business suppliers.
§ Mr. AitkenGovernment Departments, and their executive agencies, are required to pay their bills promptly. In such matters the MOD does not differentiate between large, medium or small business suppliers and normally expects to pay its bills within 30 days of receipt of a valid invoice as required by the contract.
To help encourage prompt payment of bills by Government contractors to their subcontractors all my Department's contracts will contain a clause requiring the supplier or contractor to pay its subcontractors promptly. In the absence of normal practice to the contrary for that 537W type of contract or other special circumstances, the commitment should be to pay the subcontractor within 30 days of receipt of a valid invoice or similar demand for payment as defined by the contract.
§ Sir Michael MarshallTo ask the Secretary of State for Defence what distribution has taken place within his Department and the purchasing organisations for which he has responsibility of the Department of Employment's publication "Making the Cash Flow—a Guide to the Payment of Commercial Debt for Buyers and Small Business Suppliers".
§ Mr. Aitken"Making the Cash Flow" was prepared as guidance for the private sector and there was therefore no formal distribution to other Government Departments. However, in the light of my hon. Friend's question, I will make sure that the appropriate senior officials in my Department receive a copy. I can assure my hon. Friend that my Department has a good record on the prompt payment of its due bills to all contractors, including small businesses.