HC Deb 02 June 1992 vol 208 c445W
Sir Michael Marshall

To ask the Secretary of State for Education what distribution has taken place within his Department and the purchasing organisations for which he has responsibility of the Department of Employment's publication "Making the Cash Flow—A Guide to the Payment of Commercial Debt for Buyers and Small Business Suppliers".

Mr. Forman

"Making the Cash Flow" was prepared as guidance for the private sector and there was therefore no formal distribution to other Government Departments. Guidelines on purchasing by Government Departments already exist and are distributed by Her Majesty's Treasury.

The Department of Employment has been undertaking a survey of the prompt payment record of Government Departments during the financial year 1991–92 and the results of this exercise will be published in the near future by the Department of Trade and Industry, which now has responsibility for small firms issues, including late payment. After studying these results, that Department will consider what further measures, if any, may be necessary to encourage prompt payment by the public sector.

Sir Michael Marshall

To ask the Secretary of State for Education what policy guidelines are currently in place within his Department and the purchasing organisations for which he has responsibility in respect of the prompt payment of commercial debt, particularly as it relates to small business suppliers.

Mr. Forman

Government Departments, including their executive agencies, are required to pay their bills promptly. This Department's normal payment terms, unless others are stipulated contractually, are 30 days following receipt of a valid invoice or similar demand for payment. The Department's contracts now contain a clause requiring suppliers to pay their sub-contractors promptly.

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