IBEC has introduced a voluntary prompt payment code to sort out the problems associated with the late payment of bills.

IBEC president Mr Tony O'Brien said standards needed to be raised in both the private and public sectors.

The Minister for Enterprise and Employment, Mr Bruton, said the Government was committed to "the introduction of legislation to enforce prompt payment by public bodies to small business."

All businesses are being invited to subscribe to the code, which has the support of 800 IBEC members.