Late Payment of Commercial Debts (Interest) Act

HC Deb 30 November 2001 vol 375 c1176W

Mr. Edwards

To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the applicability of the Late Payment of Commercial Debts (Interest) Act 1998 to her Department. [18636]

Mr. Morley

The Late Payment of Commercial Debts (Interest) Act 1998 has applied to the public sector (and therefore DEFRA) since 1 November 1998.

The legislation provides a statutory right for certain businesses to claim interest on late payment of commercial debts. It applies to any UK commercial contract to which DEFRA is a party.

With regard to foot and mouth matters, DEFRA takes the view that compensation and cleansing and disinfection costs payable to farmers under the Animal Health Act 1981 and Foot and Mouth Disease Order 1983 (as amended) are not commercial contracts within the scope of the Act.