HC Deb 31 March 1998 vol 309 cc475-6W
Mr. Butterfill

To ask the President of the Board of Trade what statistics her Department has collated on the payment record for commercial debt of Government departments and agencies, NHS trusts and local authorities; what steps are being taken to ensure that the Government's requirements regarding payment within 30 days, as set out in the annexe to the consultation paper, are being adhered to by them; and if payment performance is being monitored. [35439]

Mrs. Roche

[holding answer 30 March 1998]: The Government are committed to changing the payment culture in the UK and recognise the importance of the public sector leading by example in paying its invoices promptly.

Government Departments and their Agencies are required to pay all valid invoices within agreed credit terms or 30 days. They are also required to monitor their payment performance and publish the percentage of invoices paid on time in their annual or departmental reports.

My hon. Friend the Paymaster General published the league table of Departments' payment performance for the period 1 June 1996 to 31 March 1997 (Cm 662). Additionally, the DTI will produce the next league table for Departments and their agencies for the period 1 April 1997 to 31 March 1998. This will be available before the summer recess.

The payment performance of the NHS is a matter for my right hon. Friend the Secretary of State for Health. The NHS Trusts are also required to pay valid invoices within agreed credit terms or 30 days. The NHS Executive monitors the payment performance of all NHS Trusts in England on a quarterly basis. The information collected is the percentage of the number of bills paid within this target and the percentage of the value of bills paid within this target. The NHS Executive plans to publish the payment performance of all NHS Trusts in England this summer for the period 1 April 1997 to 31 March 1998.

The payment performance of Local Authorities is a matter for my right hon. Friend the Deputy Prime Minister. Local Authorities are also required to pay their bills promptly. The Audit Commission has set a performance indicator for the current year that all Local Authorities must monitor and publish details of the percentage of their bills paid on time.

Data relating to prompt payment performance in local authorities will be published by the Audit Commission, from March 1999, identifying local authority performance for the year 1997/98.