§ Dr. Michael ClarkTo ask the President of the Board of Trade what plans he has to review the case for a statutory right to interest on overdue commercial debt; and what form that review will take. [9378]
§ Mr. PageThe 1994 White Paper "Competitiveness—Helping Business to Win"—Cm 2563—announced a package of measures which the Government would introduce to tackle late payment. It also committed the Government to review the case for statutory interest
if there has not been a significant improvement within the next two years".There have been some signs of improving payment times in the UK, but late payment continues to be of concern to a number of small firms. Therefore, even though the package of measures now largely in place has not been so for long enough to have had an impact on late payment, I have decided to look again at the arguments 293W for and against statutory interest. The review will be in the context of my wider consideration of how the problem of late payment can best be addressed. I have today invited relevant submissions from representative bodies who responded to the public consultation in November 1993. The submission will be considered alongside research and survey evidence. The outcome of the review will be published in the summer.