§ Mrs. RocheTo ask the Secretary of State for Defence how his Department publicises payment practices other than as percentages of invoices paid late. [950]
§ Mr. ArbuthnotThe payment of the vast majority of the Department's bills and those of its agencies is a matter for the chief executive of the Defence Accounts Agency. The Defence Evaluation and Research Agency is responsible for paying its own bills. I have asked the chief executives of these agencies to reply.
Letter from P. J. Trevelyan to Mrs. Barbara Roche, dated 22 November 1995:
You asked the Secretary of State for Defence how his Department publicises payment practices other than as percentages of invoices paid late. As Chief Executive of the Defence Accounts Agency I have been asked to reply.All new MOD contractors receive a 'Prompt Payment Guide' and billing timetable from the Liverpool payment office. This booklet provides guidance on MOD payment procedures to help contractors submit bills correctly and therefore receive prompt payment. Contractors are invited to submit bills fortnightly in accordance with the timetable. Information about payment arrangements over Christmas and Easter is printed on the remittance advice notes which detail payments made. Details of payment schedules are also published widely throughout MOD.Because the MOD payment targets are key targets for the Defence Accounts Agency they are published in the Agency's Corporate Plan. Performance against the targets is published in the Agency's Annual Report and the House of Commons Official Report. The agreed target for financial year 1995/96 is to pay 97% of bills within 11 days of receipt at Liverpool, and all within 30 days. Currently the 11 day target is being achieved, and 99.99% is being achieved for the 30 day target.Letter from John Chisholm to Mrs. Barbara Roche, dated 22 November 1995:
You asked the Secretary of State for Defence how his Department publicises payment practices other than as percentages of invoices paid. I am replying for the Defence Evaluation and Research Agency.Details of payment practices are included in the terms and conditions of contracts sent to suppliers. Additionally we are preparing a new booklet, to be published shortly, that is intended to assist companies in doing business with DERA. This will include a section on our bill paying policies.I hope this is helpful.172W
§ Mrs. RocheTo ask the Secretary of State for Defence what is the average length of time it takes for his Department to pay invoices. [935]
§ Mr. ArbuthnotThe payment of the vast majority of the Department's bills and those of its agencies is a matter for the chief executive of the Defence Accounts Agency. The Defence Evaluation and Research Agency is responsible for paying its own bills. I have asked the chief executives of these agencies to reply.
Letter from P. J. Trevelyan to Mrs. Barbara Roche, dated 22 November 1995:
You asked the Secretary of State for Defence what is the average length of time it takes for his Department to pay invoices. This matter falls to me, as Chief Executive of the Defence Accounts Agency for reply. This statistic is not recorded locally and could only be provided at disproportionate cost.The statistics which are readily available to the Liverpool payment office go back two and a half years. During this time 99.99% of bills have been paid within 30 days of presentation of a valid invoice. The Liverpool payment office also measures its performance against a higher departmental standard of payment within 11 days of receipt of a valid invoice. It achieved its 1993/94 target of 96%, and its 1994/95 target of 97%. It has also achieved its 1995/96 target of 97% so far this financial year.Some low value bills are paid locally throughout MOD, but information about these is not held centrally and could only be provided at disproportionate cost.Letter from John Chisholm to Mrs. Barbara Roche, dated 22 November 1995:
You asked the Secretary of State for Defence what is the average length of time it takes for his Department to pay invoices. I am replying for the Defence Evaluation and Research Agency.As I said in my earlier reply of 1 November 1995, virtually all validated invoices are paid within 9 days of being received by our bill paying section.I hope this is helpful.