The Earl of Haddingtonasked Her Majesty's Government:
What is their policy on the late payment of debt; and whether they differentiate between late payment in industry, commerce and cases where compensation is due.
§ The Minister of State, Department of Trade and Industry (Lord Clinton-Davis)The Government are302WA determined to promote a better payment culture in the UK and will bring forward a package of new measures, including the introduction of a Bill to provide a statutory right to interest on late payment of commercial debts. Commercial debts will include late payments by industry and commerce. In addition the Government have welcomed the announcement that the Federation of Small Businesses will be publishing league tables showing the average payment times of public companies and their large private subsidiaries.
It is important that the public sector lead by example in paying its invoices promptly. Government departments and agencies must pay all of their bills on time. In addition the Government intend to publish league tables of the payment performance of local authorities. The Government also recognise the importance of effective credit management procedures and are pleased that all the main small firms organisations have agreed to work with the Government to look at better payment practice.