# State's 15-day "prompt payment" rule extended:



## Libretto (23 Apr 2012)

Anyone got a link where I can get details of the above? 

Does the below mean that we should be paid on 15 days and that interest kicks in after that?


*State's prompt payment rule extended*: from Irish Times May 2011.

The Government is to extend the 15-day "prompt payment" rule that applies to Government departments to other State bodies, including the Health Service Executive and local authorities.
Announcing the change today, the Minister of State for Small Business John Perry said the new rule would apply to valid invoices received on, or after, July 1st.
Mr Perry was publishing quarterly figures on payments made to business suppliers which showed that 97.5 per cent of payments in value terms were paid within the 15 time limit.
“Clearly central Government Departments are making their contribution to assisting the cash flow of their business suppliers. It is now the turn of the broader public sector to match this lead and play its part in assisting SME suppliers," he said.
More than 47,000 payments were made within 30 days, the report found, totalling €608 million. Of this figure, the majority - 41,527 totalling €593 million - were paid within 15 days, about 88 per cent.
The report found all 15 Government departments covered by the 15-day rule had paid between 93 per cent and 100 per cent of their invoices within 30 days.
The public sector bodies that will now be subject to the prompt payment rule will have to publish their performance in meeting the deadline on a quarterly basis.
Mr Perry called on the private sector to match the State's lead and improve payment performance.
The Irish Small & Medium Enterprises Association Isme welcomed the extension of the 15-day "prompt payment" rule to the HSE, local authorities, state agencies and other public bodies.
Chief executive Mark Fielding said it was a step in the right direction. “Many SMEs are being put to the pin of their collar due to not getting paid on time, with the consequent cash flow issues that arise," he said.
"It is essential that, as observed by Minister Perry, big business takes the lead of the State and immediately starts improving payment performance to their small suppliers. If not, the Government should introduce a 30 day mandatory payment period across the entire private sector, with serious consequences for companies that fail to comply."


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## xeresod (26 Apr 2012)

The reduction to 15 days was introduced as a commitment by the Government for all public bodies to pay sooner in order to improve cash flow for SMEs but the legislation was not changed so effectively it is just a guideline. (The Prompt Payments Act applies to all commercial transactions not just payments from public bodies, guidelines [broken link removed] but basically states that payments must be made in the timeframe as per the contract or with 45 days if no contract).

The late interest (which again applies to all commercial transactions not just public payments) is paid after 30 days unless otherwise specified in the contract - see the Depertment of Enterprise, Trade & Employment website for more info (eg [broken link removed]).


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## ajapale (26 Apr 2012)

Libretto,

The article you quote is from May 2011.

Here is a Dail question dating from early 2012.

*Wednesday, 29 February 2012*

  Dáil Éireann Debate 
_Vol. 757 No. 2_ 
*Unrevised* 


 

  Page  of 168 

 

 *12.* * Deputy Dessie Ellis* 

 

     asked the    *Minister for Jobs, Enterprise and Innovation* 

 

     the steps being taken to ensure that prompt payment is made by  Departments and associated bodies to small and medium enterprises.   * [11329/12]*

  Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton):  

 

   Since 2009, Central Government Departments have been  improving their respective payment times, so as to assist the cash flow  of businesses, and are obliged to pay their suppliers within 15 days of  receipt of a valid invoice.  This 15 day prompt payment rule was  introduced by Government on an administrative basis.
  Departments are required to report  quarterly to my Department on their performance in meeting this target.   To date, 10 sets of Quarterly returns have been published on my  Department’s website _www.djei.ie_. The returns for the last  Quarter of 2011 were published today.  This data will show that in value  terms 97-8% of invoices were paid within 15 days for that quarter.
  The ongoing publication of these  composite returns by my Department provides clarity in relation to the  performance of individual Departments in meeting the terms of the  Government Decision.
  As part of the commitments in the  EU/IMF Programme for Ireland, the 15 day prompt payment rule was  extended beyond central Government Departments and _*rolled out to the  Health Service Executive, the Local Authorities, State Agencies, and all  other Public Sector Bodies, (excluding Commercial Semi-State bodies),*_  in respect of valid invoices received, on or after, 1 July 2011.
  As part of this new extended  arrangement, parent Departments are required to publish on their  respective websites Quarterly composite reports covering those bodies  under their aegis.  The individual bodies covered by this arrangement  are also required to publish their own Quarterly reports on their  websites
  These new reporting arrangements  should ensure that all Ministers will be able to monitor the performance  of the bodies under their aegis and will enable them to address any  issues with those bodies who are not meeting these obligations.
  Any Small Businesses experiencing  difficulties in securing payments should, in the first instance,  approach the Government Department or State body concerned.  Any  failures to comply with the initiative can also be brought to the  attention of the relevant Minister with responsibility for the body  concerned.


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## Oracle24 (28 Mar 2013)

Can anyone explain what impact the new EU Directive 2011/7/EU on combating late payment in commercial transactions impacts upon this at all???


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## xeresod (30 Mar 2013)

Oracle24 said:


> Can anyone explain what impact the new EU Directive 2011/7/EU on combating late payment in commercial transactions impacts upon this at all???


 

Not on the 15 day commitment, but it impacts on the interest charged after the 30 day point. 

Previously sums under 5 euro didn't have to be paid and no compensation was payable unless the company being paid late looked for it. Now all interest amounts must be paid and compensation must be paid ranging from 40 to 100 (depending in invoice amount).

So now where an invoice for 50 is paid a week late and attracts approx 7c interest, 40.07 must now be paid along with the invoice amount, whereas nothing was previously due.


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