Small and Medium-sized Enterprises

Lord Trefgarne Excerpts

Tuesday 23rd October 2012 Lords Chamber

[Lord Wallace of Saltaire]

My Lords, the Government are not yet convinced that we need to take legislative action, but we are thoroughly in favour of all pressure possible to encourage large corporations to pay their small contractors as fast as possible. There is indeed a new booklet produced by the Association of Chartered Certified Accountants, Experian, the Forum of Private Business and the Institute of Credit Management which is a guide on how to ensure prompt payment and has been produced in co-operation with the Government. I must say that a number of newspapers, including in particular the Telegraph, have been very helpful in exposing the tendency of some large corporations deliberately to delay payment to their subcontractors. We all know that transparency and reputational damage are things which multinational companies are well aware of, supermarkets included.

[Lord Trefgarne]

My Lords, if my noble friend wishes to increase the number of small and medium-sized enterprises which tender for and secure government business, will he have a look at the complexity of government tendering processes which tend to put off smaller companies from competing in those competitions?

[Lord Wallace of Saltaire]

My Lords, we are also well aware of that. My right honourable friend Francis Maude and others have been looking in particular at the complexity of the pre-qualification questionnaires. We are doing our best to get rid of those for all contracts below £100,000 per year and to simplify the pre-qualification questionnaires for all others.