§ Mr. CousinsTo ask the Chancellor of the Exchequer what steps he has taken to monitor the compliance of contractors on Government contracts with clauses requiring payments of subcontractors within 30 days; and how he will report the results of this monitoring to Parliament.
§ Mr. PortilloWhere a prime contractor for a Government Department fails to comply with the provision for making prompt payment in his sub-contract, the sub-contractor will have a remedy through the courts in the normal way. Where there is evidence of poor performance by a prime contractor, which may include the
400W
Equivalised disposable income by quintile groups of all households ranked by equivalised disposable income Using the McClements equivalence scale with a household of a married couple = 1 Bottom 2nd 3rd 4th Top All 1979 1,934 2,749 3,656 4,783 7,354 4,095 1990 4,378 6,777 9,983 14,297 27,038 12,494
Using the McClements equivalence scale with a household of a married couple = 1 Bottom 2nd 3rd 4th Top All 1979 1,180 1,677 2,230 2,918 4,486 2,498 1990 2,671 4,134 6,089 8,721 16,493 7,621 late payment of bills to a sub-contractor, that will be taken into account by the Department in awarding subsequent contracts.
§ Mr. CousinsTo ask the Chancellor of the Exchequer what steps he has taken to ensure that all Government contracts contain a clause requiring payment of subcontractors within 30 days.
§ Mr. PortilloGuidance containing a model clause for inclusion in Government contracts was issued to Departments on 14 April 1992. Government Departments have confirmed that they have introduced clauses in all their contracts, where special circumstances do not apply, which require the supplier or contractor to pay its suppliers or sub-contractors promptly, normally within 30 days.