Oral Answers to Questions

Mark Pawsey Excerpts

Wednesday 24th April 2019 Commons Chamber

The Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster was asked—

[Mark Pawsey (Rugby) (Con)]

1. What steps he is taking to ensure that all Government suppliers and subcontractors are paid on time.

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

It is important to all suppliers, not least small businesses, that they are paid on time. That is why I have announced that, from this September, we will exclude suppliers from winning contracts if they fail to pay their subcontractors on time. Just this month, I contacted all suppliers to remind them of this intention.

[Mark Pawsey]

I welcome what the Minister has just said, but a significant proportion of Government procurement is on construction projects, where there are often poor payment practices, such as those exposed during the collapse of Carillion. The Federation of Small Businesses’ “Fair Pay Fair Play” campaign, which carries the message that everyone deserves to be paid on time, is asking for those projects to be made the subject of separate project bank accounts. Is the Minister considering that?

[Oliver Dowden]

Yes. My hon. Friend raises an important point. The Government already use project bank accounts on all construction projects, unless there are compelling reasons not to do so. That is just one way of ensuring our underlying objective of prompt and fair payment. It sits alongside initiatives such as paying our suppliers on time, excluding late payers and appointing prompt payment non-executive directors in all Departments.