Oral Answers to Questions

Debbie Abrahams Excerpts

Wednesday 20th March 2013 Commons Chamber

[Mr Hurd]

I recognise that there are all kinds of challenges for small organisations and, in particular, for small voluntary groups and charities in competing for public service contracts. We are opening up many more opportunities for them than there were under the previous Administration. We are working actively through things like the commissioning academy and new master classes around the country to tool up small organisations so that they can compete more effectively for such contracts.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

11. What steps his Department is taking to reduce the level of late payment by public sector contractors to small and medium-sized enterprises.

[The Parliamentary Secretary, Cabinet Office (Miss Chloe Smith)]

As I have noted, Government policy is to pay undisputed invoices within five days and to pass 30-day payment terms down supply chains. The Crown representative team in the Cabinet Office is encouraging prime contractors to do that more quickly on a voluntary basis. We have tasked Departments to manage their contracts to ensure that prime contractors pay sub-contractors within 30 days.

[Debbie Abrahams]

I am glad that the Government are now taking seriously late payments to small and medium-sized enterprises, after I received such a dismal response on the issue in 2011. When are the Government going to ensure that public sector contractors have the need to pay SMEs in their supply chain promptly in their contracts?

[Miss Smith]

I congratulate the hon. Lady on the award that she has won in connection with her work on this matter. My previous answer covered what the Government are doing. We are extremely keen to see good practice pushed throughout the supply chain. We are ensuring that more business goes to SMEs, which is good for growth. All told, that is a good thing and something of which the Government can be proud.