Oral Answers to Questions

Charlie Elphicke Excerpts

Thursday 13th June 2013 Commons Chamber

[Michael Fallon]

We are encouraging more children to take up science subjects and to study maths earlier and for longer, and to be more aware of the high-value, highly regarded careers that are available in engineering. We are urging companies to open up their premises to more visits from schools, particularly in connection with the See Inside Manufacturing initiative that we are launching again this October.

[Charlie Elphicke (Dover) (Con)]

5. What steps he is taking to ensure that small business suppliers are paid promptly by large businesses and by government; and if he will make a statement.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

I have written to all the FTSE 350 companies urging them to sign up to the prompt payment code. Signatories must pay their invoices on time to maintain membership. Three quarters of FTSE 100 companies are now signatories, and over 1,400 large companies have signed in total.

[Charlie Elphicke]

Last year a Federation of Small Businesses report showed that 40% of small businesses had faced problems with payment from Government agencies and quangos. Will the Minister make the prompt payment code mandatory for all public sector organisations and consider budget cuts for persistent offenders?

[Michael Fallon]

There is now a statutory obligation for all public bodies, including the NHS and local authorities, to pay invoices within 30 days.

--- Later in debate ---

[Vince Cable]

I am frequently in the west midlands; I was in Coventry last week discussing these issues with the local enterprise partnership. My understanding is that there has been rapid growth in private sector employment in the west midlands and many other parts of the country, and, as the hon. Gentleman will have seen from yesterday’s figures, unemployment is still falling.

[Charlie Elphicke (Dover) (Con)]

T7. The late payment of commercial debt regulations provide for a 60-day payment period, unless agreed and not grossly unfair. Will Ministers consider a longstop date of 90 days to give small businesses certainty?

[Michael Fallon]

I know that my hon. Friend has continued to raise the case of Mr and Mrs Langstaff in his constituency. The “Insurance: Conduct of Business” rules require insurers to handle claims promptly, and redress is available through the Financial Ombudsman Service if they do not do so. I note that a number of insurance companies have now signed the prompt payment code.