STATE bodies are among the worst offenders on late paying of debts, the House was told. The Fianna Fail spokeswoman on Enterprise and Employment, Ms O'Rourke, moved a Bill in Private Members' Time which would implement the recommendation of the Task Force on Small Business and require all State bodies to settle their debts within 45 days.

The Bill, she said, would apply to every Government department, health boards, harbour authorities, local authorities, VECs, and semi state companies.

A survey by the task force showed that only 35 per cent of State bodies paid within 40 days; 30 per cent took 90 days; 15 per cent took six months, while 10 per cent took a year. The survey calculated that the average payment period for the public sector was 154 days.

Where a State body failed to pay on time the Bill provided an interest payment of 1.25 per cent a month on the amount due.

The Minister for Enterprise and Employment, Mr Bruton, said that while the Fianna Fail Bill applied to amounts due to suppliers of goods and services by public sector purchasers, he would be proposing a Bill to coyer all business debt, not just small businesses.