§ Mr. PageTo ask the President of the Board of Trade what steps she has taken to establish a reference point from which improvements in payment times for small businesses would be measured under a statutory right for interest. [13107]
§ Mrs. RocheMy Department will continue to monitor and analyse the findings of business surveys into payment times for small businesses. In addition my officials are discussing with the University of Bradford the establishment of a payment observatory which will monitor and report on payment trends including the lateness of payment. The observatory would also identify best practice in credit management so that small businesses can benchmark their own performance.
The Government has made it clear that the Commercial Debts (Interest) Bill is just one of a package of new measures that it will bring forward to promote a better payment culture in the UK. Central and Local Government will be required to publish tables of their actual payment performance and the Government has welcomed the announcement by the Federation of Small Businesses that they will publish league tables of the average payment times of public companies and their large private subsidiaries.
The Government fully recognises the importance of effective credit management procedures and is pleased that all the main small firms organisations have agreed to work with the Government to look at better payment practice.