Baroness O'Cathain
Main Page: Baroness O'Cathain (Conservative - Life peer)
Lord Popat
My Lords, government departments are obliged to pay 80% of their invoices within five days. We are promoting a culture of prompt payment. We would not like to bring this in as part of legislation. In many ways, we inherited this particularly important and good legislation from the previous Government. We will now further enhance it by taking the European directive to make sure that UK suppliers are paid by member states of Europe.
Baroness O'Cathain
My Lords, I ask my noble friend whether it is a great thing that 75% of the FTSE 100 who actually pay have subscribed to this code. First, a code is a code, not a law. Circumstances are such now, with austerity in such a state, that we ought to look at this seriously. If 75% of the FTSE 100 pay on time, that still leaves one in four of our major companies that do not. I also support the point that my noble friend raised: is the Minister able to give us details of which government departments actually pay on time, not the ones that do not?
Lord Popat
My Lords, at least 80% of invoices are paid within five days by government departments. In March 2013, the biggest paid 97.1% of its invoices within five days. Although 75% of FTSE 100 companies have signed this code, we are doing everything possible to encourage and support the other 25% who have not signed. However, there is a good chance that these companies do not supply that many goods and services in the UK, even though they are FTSE 100 companies listed in the UK.