Late payment of contractors
Deputy Aird complained that State and semi-State bodies can take up to four months to pay contractors, creating serious strain for small firms. The Taoiseach agreed that long payment periods are unacceptable and said efforts are under way to speed up rebates and payments.
I wish to raise the issue of payment terms applied by State and semi-State bodies to contractors. I welcome that payments are guaranteed but I have been told that payment terms can stretch to four months, which is simply not acceptable. These are small and medium-sized operators, the backbone of small enterprise across Ireland, who must cover fuel, machinery, wages and other overheads all upfront. They cannot wait months to pay staff or creditors. Payment delays are placing real financial strain on otherwise viable businesses. I respect that commercial contracts are not for direct interference but it is reasonable to question why State agencies, which should set the standards, are imposing such lengthy payment terms. I ask that the Government examines this issue and ensures fair, timely and responsible payment practices for small contractors across Ireland. Will the Taoiseach send a memo to all the Ministers asking them to talk to and engage with all the agencies?
Comment on this
I thank the Deputy for raising a very fair question. I would be equally intolerant of overly lengthy periods for paying contractors, particularly small to medium-sized enterprises, which need to be paid in a timely manner. I know that in the recent discussions with the Irish Road Haulage Association in which the Minister of State, Deputy Canney, and the Minister, Deputy O'Brien, were engaged, issues around payments and rebates, and the timeliness of those, were raised. Undertakings have been given to try to speed up some of those repayments, rebates and so on. It is a very fair question, and the State should act honourably and reasonably in these circumstances.