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Small Businesses

Volume 176: debated on Monday 9 July 1990

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To ask the Secretary of State for Employment what representations he has received from small businesses urging prompt payment by Government Departments; and if he will make a statement.

I have received a number of representations in the past year on the general subject of prompt payment, some of which referred to Government Departments' payment practices. However, I have received only six representations from small businesses which refer to specific cases of late payment by Government Departments. In only one of these cases has it been shown that a Department was directly responsible for the late payment of a debt. The delay was due to an administrative error.The Government as a major purchaser of supplies and services, worth about £15 billion each year, have a good record on prompt payment which demonstrates our commitment to the policy that all payments should be made on time. Furthermore, I am always prepared to take up any specific examples of late payment by Government Departments to small firms that are brought to my attention.