The Government is to extend the 15-day "prompt payment" rule that applies to Government departments to other State bodies, including the Health Service Executive and local authorities.
Announcing the change today, the Minister of State for Small Business John Perry said the new rule would apply to valid invoices received on, or after, July 1st.
Mr Perry was publishing quarterly figures on payments made to business suppliers which showed that 97.5 per cent of payments in value terms were paid within the 15 time limit.
“Clearly central Government Departments are making their contribution to assisting the cash flow of their business suppliers. It is now the turn of the broader public sector to match this lead and play its part in assisting SME suppliers," he said.
More than 47,000 payments were made within 30 days, the report found, totalling €608 million. Of this figure, the majority - 41,527 totalling €593 million - were paid within 15 days, about 88 per cent.
The report found all 15 Government departments covered by the 15-day rule had paid between 93 per cent and 100 per cent of their invoices within 30 days.
The public sector bodies that will now be subject to the prompt payment rule will have to publish their performance in meeting the deadline on a quarterly basis.
Mr Perry called on the private sector to match the State's lead and improve payment performance.
The Irish Small & Medium Enterprises Association Isme welcomed the extension of the 15-day "prompt payment" rule to the HSE, local authorities, state agencies and other public bodies.
Chief executive Mark Fielding said it was a step in the right direction. “Many SMEs are being put to the pin of their collar due to not getting paid on time, with the consequent cash flow issues that arise," he said.
"It is essential that, as observed by Minister Perry, big business takes the lead of the State and immediately starts improving payment performance to their small suppliers. If not, the Government should introduce a 30 day mandatory payment period across the entire private sector, with serious consequences for companies that fail to comply."
