Tree Surgery (Hansard, 6 December 1995)

§ Mr. Watts

I have asked the chief executive of the Highways Agency to write to my hon. Friend.

Letter from Lawrie Haynes to Mr. David Nicholson, dated 6 December 1995:

As you know, the Minister for Railways and Roads, Mr. John Watts, has asked me to reply to your recent Parliamentary Question asking the Secretary of State for Transport, what representations he has had regarding delays in paying small business contractors for tree surgery and felling along England's trunk roads, if his Department has a time target for such payments, and if he will make a statement.I am not aware of any representations regarding delays in paying small contractors for tree surgery and tree felling on trunk roads but if you have a particular case in mind, and can let me have details, I will investigate.I am, however, very conscious that good cash flow is the life blood of many small businesses and that late payment is a common cause of concern in many industries. I am particularly aware of the problem of late payment of specialist engineering sub-contractors by main contractors and since 1992 we have included "prompt payment" provisions in our contracts in an effort to speed up the flow of payments. Unfortunately, these measures have had little beneficial effect and we are currently looking at other ways in which the problem might be tackled within our policy of having a single point of contractual responsibility whenever possibleAs for direct payments to contractors, the Highways Agency and its predecessor organisations have earned a good reputation for timely payment within the periods provided for under the terms and conditions of our contracts—generally 30 days from receipt of demands for payment. That is a reputation which I am determined to preserve.