Senator Catherine Noone today spoke out on the urgent need to assess how many public sector payments to private businesses were going into arrears of more than 15 days and what can be done to solve these bottlenecks when they arrived.
Speaking on the issue, the Senator said: “As we know, many business suppliers are under intense cash flow pressures. These pressures are made worse by public sector bodies being slow in making payments to private firms. As such, I am calling for a review of public sector bodies and whether or not they’re complying with the Government’s prompt payment guidelines. In 2009, the stated payment period from Government Departments to their business suppliers was reduced from 30 days to 15 days and this was then widened to include the wider public sector in the National Recovery Plan”.
Senator Noone added: “However, as noted by Dublin Chamber, many of its members have noted that public sector bodies are failing to comply with this policy fully, and the average waiting time for payment from public sector bodies is currently 38 days”.
Senator Noone concluded: “I believe that we need to ascertain how accurate these figures are and then find out what is causing these delays. It is unacceptable for public sector bodies to be putting such unnecessary strain and uncertainty on the cash flow of business suppliers by being tardy in their payments. As such, I believe a comprehensive review is necessary”.