§ Mr. David Atkinson
To ask the Prime Minister what plans he has to require contracting suppliers of goods and services to Government Departments to exercise good practices in the prompt payment of their sub-contractors; and if he will make a statement.
§ The Prime Minister
Following the announcement during the 1992 Budget, all Government contracts have been required to contain a clause requiring the supplier or contractor to pay its subcontractors promptly. In the absence of normal practice to the contrary for that 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.