§ Ms LynneTo ask the Secretary of State for Defence what is the average time taken by his Department in the payment of commercial bills in each year since 1993; and what are his Department's policies for the payment of commercial bills for contracts awarded to small companies. [19607]
§ Mr. ArbuthnotThis is a matter for the chief executive of the Defence Bills Agency. I have asked the chief executive to write to the hon. Member.
Letter from T. R. Thurgate to Ms Liz Lynne, dated 8 March 1996:
You asked the Secretary of State for Defence what is the average time taken by his Department in the payment of commercial bills in each year since 1993; and what are his Department's policies for the payment of commercial bills for contracts awarded to small companies. As this matter falls within my area of responsibility as Chief Executive of Defence Bills Agency I have been asked to reply.
The statistics which are readily available go back to April 1993. During this time 99.99% of bills have been paid within 30 days of presentation of a valid bill. The Defence Bills Agency also measures 326W performance against a higher departmental standard of payment within 11 days of receipt of a valid bill. We achieved the 1993/94 target of 96%, the 94/95 target of 97%, and are on course to achieve the 97% target for 95/96.
All new MOD contractors receive a 'Prompt Payment Guide' from the Defence Bills Agency, I have enclosed a copy for you. This booklet provides guidance on MOD payment procedures to help contractors submit bills correctly and therefore receive prompt payment.