HC Deb 03 July 1997 vol 297 cc264-5W
34. Mr. Page

To ask the President of the Board of Trade what research she has evaluated into comparisons carried out between the countries that make up the European Union over the effect of a statutory right of interest on late payment. [5240]

Mrs. Roche

My Department has closely analysed the findings of research into late payment problems across Europe and the effect of a statutory right to interest, including recent surveys carried out by NOP and Grant Thornton.

Research undertaken by Grant Thornton identified that those Member States where businesses use legislation for statutory interest most frequently had much quicker payment periods. Additionally the research undertaken by NOP showed that 80 per cent. of British businesses wanted a statutory right to interest.

We are determined to end the culture of late payment in the UK and will introduce the Fair Payment of Commercial Debts Bill to give businesses a statutory right to claim interest on the late payment of commercial debts. We will consult on the most appropriate way of introducing legislation and will issue a Green Paper soon.