HC Deb 19 April 1991 vol 189 cc281-2W
Mr. Sillars

To ask the Secretary of State for Employment what steps he has taken to assist the self-employed small business person to obtain timely payment of legitimate accounts rendered to large companies.

Mr. Jackson

Cash flow is a vital factor in the efficient running of all businesses, and any delays in obtaining payment for work done are particularly damaging for self-employed people and small businesses. It is vital that large companies recognise their responsibilities to small suppliers by settling accounts promptly.

The Government are therefore taking action to strengthen their encouragement of the voluntary adoption of good payment practice and to foster closer co-operation betweeen buyers and sellers.

As part of this initiative, my Department will shortly be issuing a revised booklet on credit management for small firms, and is sponsoring a new guide on good payment practice by the Institute of Credit Management which will be specifically aimed at larger companies. These publications will be widely distributed and publicised.

The Government themselves are giving a further lead. Each of the major spending Departments will be monitoring its own payment performance this year, and the results will be published.

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