§ Viscount Montgomeryasked Her Majesty's Government:
What progress has been made towards requiring large companies to state in their reports and accounts how quickly they pay outstanding debts.
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Baroness Denton of Wakefield)The Department of Trade and Industry has today published a consultative document to take forward the commitment the Government have given that in future large companies will be required to state in their report and accounts how quickly they pay.
Late payment is a reflection of business culture which is intangible and notoriously resistant to change. The Government are using their influence to nudge a culture change in the right direction.
A number of options have been considered as the best way of taking forward the commitment, and these options are discussed in the consultative document. The Government preferred option uses data large companies collect already, rather than requiring collection of new data which would be a burden on business. Suppliers and others will be provided with information they have not had previously. The consultative document also suggests which companies would be required to make this disclosure by proposing a definition of large companies.
The department is seeking comments on the consultative document by 26th March 1993, with a view to presenting the necessary regulations to Parliament and applying them to company accounts as soon as possible.