28th February 2012
Mr John Perry, T.D. Minister for Small Business, today (Wednesday) published the latest sets of quarterly composite figures, which show that Government Departments and the Agencies under the auspices of the Department of Jobs, Enterprise and Innovation are complying with the Government requirement to pay business suppliers within 15 days of receiving a valid invoice.
Minister Perry welcomed the continuing high levels of payments by all Government Departments and the Agencies under the aegis of his Department. “It is vitally important, that small businesses are paid quickly, so that they, in turn, can pay their respective creditors. This ripple effect helps cash flow for business and helps build up confidence in businesses right across the economy”.
The Action Plan for Jobs published a fortnight ago, reflects many of the issues that are of concern to the small business sector, which have been highlighted by me as Minister for Small Business to Government. The Action Plan takes on board, in particular, two recommendations relating to prompt payments, from the Report of the Advisory Group for Small Business, which I chair.
The Actions involved are to:
- Make available an official notice regarding 15 Day Prompt Payments Rule, Point-3.44
- Develop a Voluntary Code of Conduct on Payments (Private Sector), Point-6.4
“My officials and I will work with business stakeholders over the coming weeks to implement these two recommendations. I encourage private sector representative bodies to develop the proposed Voluntary Code of Conduct on Payments on behalf of their members, so that they can begin paying their respective suppliers within in 15 days, at an early date”, Minister Perry concluded.
Links to Quarterly returns:
Prompt Payment by Government Departments Returns 2011
Prompt Payment Returns by Agencies of DJEI 2011
Key Findings of Quarter 4 (October - December) 2011
(a) Government Departments
These returns are the 10th set of returns by Government Departments.
- A total of 60,930 payments were made in Quarter 4 amounting to €1.481bn an increase of €575m on Quarter 3.
- Of these, a total of 49,894 payments totalling €1.448bn were paid within 15 days. These payments represent 81% of the total number of payments made by Departments. An increase of €564m on Quarter 3.
- In value terms, 97.8% were paid within 15 days compared with 97.6% in Quarter 3.
- 58,046 payments were made within 30 days by Departments in the above period amounting to €1.473bn an increase in value of €569m on the previous quarter
- A further 8,152 payments or 13.4% were made between 16 and 30 days;
- 9 Departments were paying in excess of 90% of invoices by value within 15 days;
- the other 7 Departments were paying in excess of 85% of invoices by value within 15 days and
- 15 Departments had paid between 93% and 100% of their invoices within 30 days, in respect of the number of invoices received, while the remaining one paid 89% of invoices within 30 days.
(b) Agencies under the auspices of the Department of Jobs, Enterprise and Innovation
These are the 2nd set of returns by the Agencies under the auspices of the Department of Jobs, Enterprise and Innovation in accordance with the new arrangement of extending the 15 day prompt payment requirement to the wider public service.
- A total of 20,987 payments were made in Quarter 4 by the Agencies amounting to €50m; an increase in value of 56% on Quarter 3.
- 16,914 payments totalling €48m were paid within 15 days. These payments represent 81% of the total number of payments made by Departments.
- In value terms, 96% were paid within 15 days
- A further 3,809 payments or 18% were made between 16 and 30 days;
- 11 Agencies were paying in excess of 90% of invoices by value within 15 days; this is an increase of 5 Agencies since Quarter 3.
- The remaining 2 were paying between 64% and 71%% in value within 15 days
- All 13 Agencies paid between 89% and 100% of their invoices within 30 days, in respect of the number of payments made.
ENDS
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