§ Mr. BurgonTo ask the Secretary of State for Trade and Industry what proportion of bills were paid on time by Government Departments and their agencies during the financial year 1998–99. [93427]
§ Mr. ByersThere has been a further improvement in the payment performance of Central Government as a whole. The majority of Departments met the previous target of paying 95 per cent. of their suppliers' bills on time.
There is no room for complacency and it is disappointing to see that a number of Departments and Agencies, including DTI, failed to meet this year's target of 97.5 per cent. I have taken steps to remind all Departments and Agencies, including DTI, of the importance of paying suppliers' bills on time and meeting the target.
The target for the 1999–2000 financial year has been increased: to pay 100 per cent. of undisputed suppliers' bills on time. It is particularly important that the public sector sets an example to business and is seen to pay its bills on time.
We are committed to improving the UK's payment culture. Late payment is a serious problem, particularly for small businesses. Not knowing when customers' bills will be paid means uncertain cashflow, increased borrowings, higher costs and reduced profits.
Government Departments and their Agencies are required to monitor their payment performance and to publish the results in their Departmental or annual reports. The following table lists, by Department, the proportion of bills paid within 30 days, or other agreed credit period, of receipt of a valid invoice for financial year 1998–1999.
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Government Departments payment performance 1998–99 Percentage Main departments Paid on time Privy Council Office 100 National Investment and Loans Office 100 Scotland Crown Office 99.9 Ministry of Defence 99.8 Government Actuary's Department 99.4 Radiocommunications Agency1 99.3 Office of the National Lottery 99.3 Ordnance survey 99.1 Office of Water Services (OFWAT) 99 Insolvency Service1 99 HM Land Registry 98.6 Office of Electricity Regulation 98.4 Registry of Friendly Societies 98.4 Intervention Board for Agricultural Produce 98.3 Office of Fair Trading 98 OFSTED 97.9 Department of Culture, Media and Sport 97.9 Foreign and Commonwealth Office 97.7
Government Departments payment performance 1998–99 Percentage Main departments Paid on time Building Societies Commission 97.5 HM Customs and Excise 97.5 Office of Telecommunications 97.3 Welsh Office 97.3 Department for Education and Employment 97.2 Inland Revenue 97.2 Public Records Office 97.1 Scottish Office 96.8 Forestry Commission 96.7 Lord Chancellor's Department (including Public Trust Office) 96.7 Department for National Savings 96.7 Home Office 96.6 Department of Trade and Industry 96.3 Office of the Rail regulator 96.3 Department for International Development 96.3 Cabinet Office 96.3 Treasury Solicitors Department 96.2 Northern Ireland Office 96.1 Crown Prosecution Service 96 Office for National Statistics 95.6 Serious Fraud Office 95.4 Royal Mint 95 Office of Passenger Rail Franchising 95 Office of Gas Supply 94.9 Export Credits Guarantee Department 94.4 Charity Commission 94.1 Health and Safety Executive2 94.1 Department of Health 94 Ministry of Agriculture Fisheries and Food 93.3 Department of Environment, Transport and the Regions 93.1 HM Treasury 93 Department of Social Security 91.7 Total 96.8 1 Insolvency Service and Radiocommunications Agency are Executive Agencies of the Department of Trade and Industry. 2 Health and Safety Executive is an Executive Agency of the Department of Environment Transport and the Regions.