§ Mr. Ken HargreavesTo ask the Secretary of State for Employment how he intends to ensure that Government Departments pay small business suppliers promptly.
§ Mr. HowardAll Government Departments are committed to ensuring that the timing of payment is normally stipulated in all contracts. If, however, there is no contractual provision or other understanding or accepted practice governing the timing of payment, departments' practice is to pay within 30 days of receipt of goods and services or the presentation of a valid invoice or similar demand for payment, whichever is the later.
I also draw attention to the recent CBI/Cork Gully survey which found that national public sector bodies cause less significant problems than large private sector firms. Indeed, of those who deal with such bodies, a significant proportion of respondents said they cause no problem.
However, we are not complacent about this record. During the 1991–92 financial year major spending Departments will be monitoring their payment performance and will make an annual return to my Department. The results will he published.