LEGISLATION forcing state bodies to pay their bills within 45 days or face hefty fines could become law within six weeks if the Government supports its proposals, Fianna Fail said yesterday.

The Bill will also provide a role for the Ombudsman to investigate disputes concerning late payments by state bodies, the party's deputy leader, Ms Mary O'Rourke, said yesterday.

The Minister for Enterprise and Employment, Mr Bruton, announced last week he had got Government approval to introduce similar legislation. However, the Fianna Fail leader, Mr Bertie Ahern, said yesterday this could take several months to prepare.

He said his party would take whatever amendments the Government wished and the bill could pass through both Houses within six weeks.

Under Fianna Fail's proposals, the legislation would take effect from July next. Quoting a previous survey, Ms O'Rourke said the Bill could save small businesses up to £20 million per year in credit costs.

She vowed that no State bodies would be excepted from the legislation. "In our Bill we also offer a major discouragement to stop State companies introducing unreasonable credit terms in written contracts to avoid the terms of this Act," she said.

"Small businesses will be able to notify such attempts to the Ombudsman and if he deems unreasonable credit terms are being operated, further penalties can be introduced," she added.

Ms O'Rourke said Fianna Fail would continue to review the situation in relation to the private sector. Mr Pat Delaney of the Small Firms Association (SFA) pointed out that IBEC, the employers' lobby group, already had a voluntary code on late payments.

However, Ms O'Rourke said she was not a great believer in voluntary codes of practice. "They give the cosy, comfortable feeling that something is being done, but in reality this is often not the case.

Fianna Fall's Bill was welcomed by the SFA.