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Small Company Suppliers

Volume 83: debated on Thursday 25 July 1985

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asked the Secretary of State for Defence what steps are taken by his Department to seek to ensure prompt payment to small company suppliers, whether as main contractors or subcontractors to main contractors.

The Ministry of Defence's arrangements for the payment of contractors' bills are sent annually to all our contractors irrespective of size. These arrangements include the date on which bills should be submitted within each four weekly cycle. Our aim is to make payment 7 to 10 days later, provided the bills are properly supported by the necessary documentation.The relationship between contractors and subcontractors is a matter for the parties concerned, and one in which the MOD should not be involved. Nevertheless, I would expect contractors to pay their subcontractors in the same prompt and helpful way in which the MOD settles its payment claims.