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Departmental Procurement

Volume 479: debated on Monday 1 September 2008

To ask the Secretary of State for the Home Department what her Department’s policy is on requesting discounts from its suppliers in return for swift payment of invoices. (220433)

The Home Department in line with other Government Departments requires payment to be made in accordance with the terms and conditions of the contract usually within 30 days of the receipt of the goods or services or of a valid undisputed invoice whichever is the later.

Agreement to requests for prompt payment terms of less than 30 days offer little to the Department unless tangible benefits in terms of discounted prices, better delivery times or service improvements are secured in return.

Where there is a tangible benefit to both the Home Department (e.g. discounted price) and the supplier (e.g. optimising their cashflow) a payment period of less than 30 days may be negotiated between the parties and incorporated into the terms and conditions of contract.