Small and Medium-sized Enterprises

Debate between Lord Wallace of Saltaire and Lord Mitchell

Tuesday 23rd October 2012 Lords Chamber

[Lord Wallace of Saltaire]

My Lords, I dare say that that is a question which will come up if and when we next move on to a company law reform Bill.

[Lord Mitchell]

My Lords, small companies in particular depend on prompt cash flow—indeed, it is their lifeblood. However, it is still true that many organisations in different areas, but particularly those in the public sector, are notorious for paying late. Despite the assurances that the Minister has given, I ask the Government to issue a firm directive to all organisations in the public sector stating that payments to SMEs are to be made within a short time after the receipt of an invoice.

[Lord Wallace of Saltaire]

My Lords, the Government have done that and are introducing a number of practices to ensure that that is done. The mystery shopper and other efforts are always feeding back to ensure that where it is not yet done, steps are taken to improve matters.