§ Baroness Denton of Wakefieldasked Her Majesty's Government:
What percentage of monies overdue to businesses defined as small businesses by their criteria is from other small businesses.
§ Lord Simon of HighburyRecent work undertaken on small and medium sized businesses by Grant Thornton showed that 34 per cent. of those surveyed90WA identified large enterprises as having the longest payment periods in the UK compared to small enterprises at 28 per cent. This is supported by a Lloyds Bank survey which found that 52 per cent. of those surveyed stated that large enterprises were the worst late payers compared to 38 per cent. for small businesses.
The Government are determined to promote a more ethical payment culture in the UK and that is why we have responded to the calls from small businesses and announced a new package of measures to tackle late payment, including the introduction of The Fair Payment of Commercial Debts Bill.
§ Baroness Denton of Wakefieldasked Her Majesty's Government:
How they intend to ensure that the European Commission pays British companies promptly; and what is the current record of such payment.
§ Lord Simon of HighburyThe Government are committed to changing the payment culture that exists in the UK. We will work closely with the European Commission and other member states to ensure that small businesses are paid promptly both in domestic and European markets.
The European Commission has since 1991 a target of paying all bills within 60 days. For 1996 the average payment time by the Commission was 43.1 days.
I understand that, in order to improve its payment performance, the European Commission decided on 10 June 1997 to pay interest on all payments which are made after more than 60 days. This is in line with the recommendation on payment periods in commercial transactions issued by the European Commission to member states of 12 May 1995.