Lord Sugar
Main Page: Lord Sugar (Crossbench - Life peer)Businesses: Contracts and Payments
Lord Sugar Excerpts
Baroness Wilcox
My Lords, I am a bit of an expert on Sir Philip Green’s report because I have read it now. His report says nothing specific about government payment terms. In interviews, he says that the norm in most departments is to pay suppliers in five days, compared with the standard 30-day-payment period for most private sector transactions and the 45 days demanded by some bigger companies like his own. If the Government demanded a minimum of 30 days of credit from suppliers, they would save hundreds of millions of pounds in financing costs. That is what he has said in conversation but his report actually says nothing at all about it.
Lord Sugar
Will the noble Lord, Lord Strathclyde, consider issuing vuvuzelas to his Benches? They would make a much better noise. In the document recently published by BIS, Backing Small Businesses, I have read many of the claims which the Minister has stated today about 80 per cent of invoices being paid in five days, prime contractors paying their subcontractors within 30 days, and 15 per cent of business being dished out by Government to small businesses. That is a restatement of what the previous Chancellor said in the Budget of 25 March this year. Do the Government have any of their own ideas of what they are going to do to back small businesses instead of restating policies that have already been implemented?
Baroness Wilcox
My Lords, the noble Lord, Lord Sugar, knows what a fan I am of his, so I will always try and please him. I am delighted to know that the previous regime did such work in this area and we intend to do good work to build on that. I hope he will give me time to get that all under way.