§ Mrs. DunwoodyTo ask the President of the Board of Trade how many small firms have gone out of business in each of the last 10 years.
§ Mr. LeighThe number of businesses registered and deregistered for VAT in the past 10 years is given in the table.
Registrations and deregistrations: 1981–1991 Year Registrations 000's Deregistrations 000's 1981 152 120 1982 166 145 1983 180 145 1984 182 152 1985 183 163 1986 192 165 1987 210 169 1988 240 172 1989 256 176 1990 239 184 1991 206 203
§ Mr. FatchettTo ask the President of the Board of Trade what new proposals his Department has to help small businesses collect outstanding debts; and if he will make a statement.
§ Mr. Leigh[holding answer 3 November 1992]: Late payment debt is an issue which we are actively addressing. Following from the 1992 Budget, the President of the Board of Trade is, with colleagues:
- (a) introducing new contracting terms requiring companies awarded Government contracts to pay their subcontractors promptly, normally within 30 days;
- (b) consulting on proposals to require large companies to state in their reports and accounts how quickly they pay;
- (c) Promoting improvements to court procedures for debt recovery.
Furthermore, the Department of Trade and Industry is providing financial support for three trade associations to operate pilot prompt payment initiatives. Many training and enterprise councils and other bodies also provide training for businesses on credit management and debt collection.
My noble Friend Baroness Denton of Wakefield, as Under-Secretary of State for Consumer Affairs and Small Firms, has given her personal commitment to hell) small firms experiencing late payment by large companies of public bodies and supports the initiative of the CBI and other bodies in relation to prompt payment.