Tánaiste Publishes Figures on Government Departments’ Earlier Payments to Business Suppliers

“Departments Paying Early”

The Tánaiste, Mary Coughlan, T.D, Minister for Enterprise, Trade and Employment, today (Wednesday 30th December 2009), published the first composite figures from returns from Government Departments on payments made to their respective business suppliers.

The Tánaiste said that in May 2009, the Government had approved arrangements, on an administrative basis, to reduce the payment period by central Government Departments to their business suppliers from 30 to 15 days, with effect from 15 June 2009.

“ When I announced this initiative last May” said the Tanaiste, “I noted that reducing payment periods to 15 days by Government Departments should help ease cash flow difficulties for small business operating under the current economic difficulties.”

Under the new arrangements, Departments are now required to report quarterly to the Tánaiste’s Department on how they have complied with the Government commitment and also include information on the implementation of the measures in subsequent Annual Reports. The first returns by Departments cover the period 15 June to 30 September 2009.

These returns show:

• A total of 62,860 payments were made by Departments in the above period amounting to €1.92bn;

• 49,890 payments totaling approximately €1.76bn were paid within 15 days. These payments represent 80 % of total payments made by Departments; in value terms 91% were paid within 15 days

• A further 17% or almost 11,000 payments were made between 16 and 30 days;

• Overall, 97% of payments during the period amounting to €1.86bn were paid within 30 days

• • Although there was some variation between the performances of individual Departments, 5 Departments were paying in excess of 90% of invoices within 15 days, a further 7 Departments were paying in excess of 83% of invoices within 15 days, while the remaining three had paid almost 50% of their payments within 15 days;

• 9 Departments had paid between 98% and 100% of their invoices within 30 days, a further 5 had paid between 93% and 96% of their invoices within 30 days, while the remaining Department had paid 87% of invoices within 30 days.

“It is evident from the returns received, that Departments are playing their parts in assisting the cash flow of their suppliers, many of whom are Small and Medium Enterprises. The new procedures and processes introduced are having an impact in assisting Irish SMEs cash flow in the current difficult economic environment and I welcome this development”, the Tánaiste concluded.

Future quarterly returns will show the overall consistency of Departments in meeting the 15-day payment requirement and any changes in the performance of individual Departments.