PUBLIC sector purchasers and contractors on public sector contracts will have to pay interest on late payments under the terms of a Bill to be published today, writes Colm Keena.
The Prompt Payment of Accounts Bill 1997 is designed to ensure the prompt payment of accounts due to suppliers of goods and services to public service purchasers and contractors on public sector contracts.
The Minister for Enterprise and Employment, Mr Bruton, is anxious to see the public sector to the forefront in the payment of debts.
The provisions of the new Bill could be extended to the private sector, if the situation there remains unsatisfactory after the Bill is enacted.
Public bodies will be required to pay amounts due to suppliers on or before the date due under the terms of written contracts. Where the date is not established by written contract, public bodies will have to pay within 45 days of receipt of an invoice or the date of supply, whichever is the later.
The Bill contains measures aimed at deterring public bodies from seeking unduly long credit periods in written contracts. The Bill will apply to all public sector bodies, though it will allow a one year transition period for Aer Lingus, Telecom Eireann and CIE.
There will be an automatic entitlement to interest in respect of late payments and no mechanism for waiving such penalty payments. Public bodies will have to publish details of their payment practices in their annual reports. If they do not publish annual reports, they will have to lay an annual review of payment practices before the Oireachtas.
