Small and Medium-sized Enterprises: Late Payments

Lord Brookman Excerpts

Thursday 19th June 2014 Lords Chamber

[Viscount Younger of Leckie]

The record for government payment is improving the whole time, and I am pleased to say that my own department, BIS, has a 97.3% record. We keep a very strong eye on the stats, and we are very aware of the fact that the public sector has to keep up.

[Lord Brookman (Lab)]

My Lords, I speak specifically about the roofing industry. As many other noble Lords are, I am a member of the All-Party Parliamentary Group for the Roofing Industry. The industry is in an appalling situation, with money held back when work is completed; in some instances, people are going out of business. Seriously, Minister, these people need help.

[Viscount Younger of Leckie]

The noble Lord refers to the construction industry, concerning roofing, if I read him correctly. We welcome the principles announced by the Construction Leadership Council to end the unfair use of cash retentions. The use of retentions is, I am pleased to reassure the noble Lord, in decline, with many of the construction industry’s better clients no longer withholding payments. Indeed, the Government have committed to reduce their use on their own contracts.