§ Mr. DonaldsonTo ask the Secretary of State for Northern Ireland if he will make a statement on Government policy with regard to the late payment of bills by large firms to other firms smaller than themselves. [88845]
§ Mr. PearsonGovernment policy on this issue is the responsibility of the Department of Trade and Industry.
Current legislation extends to Northern Ireland. The United Kingdom was one of the first countries in the EU to implement late payment legislation to help promote a culture of prompt payment. There has been a statutory right for interest for late payment for Small and Medium Sized Enterprises (SMEs) owed money by large firms or the public sector since 1 November 1998, when the Late Payment of Commercial Debts (Interest) Act 1998 came into force. Since 1 November 2000 SMEs have been able to charge each other statutory interest, as well as large businesses and the public sector, for the late payment of commercial debt.
Amended late payment legislation came into force on 7 August 2002. The legislation fulfils the UK's obligations under European Directive 2000/35/EC on combating late payment in commercial transactions.