§ Mr. CousinsTo ask the Chancellor of the Exchequer, pursuant to his reply to the hon. Member for Leeds, Central (Mr. Fatchett) of 18 November,Official Report, column 225, when the new contracting terms for Government contractors to be paid within 30 days came into effect.
§ Mr. Portillo[holding answer 9 February 1993]: Guidance was issued on 14 April 1992 to all Government Departments and executive agencies. For all contract award procedures initiated after that date, all Government contracts are to contain a clause requiring the supplier or contractor to pay subcontractors promptly. In the absence of normal practice to the contrary for that type of contract, or other special circumstances, the commitment should be to pay the subcontractor within 30 days of receipt of a valid invoice or similar demand for payment as defined by the contract.