Late Payment

EDM number 1007 in 2003-04, proposed by Brian Cotter on 20/04/2004.

That this House notes with concern the fifth payment performance table recently published by the Federation of Small Businesses which shows that plcs in the UK have made no improvement in the time it takes them to pay their bills over the last four years; recognises that despite the introduction of statutory interest rights, late payment remains a major problem for small businesses, with large businesses owing small firms a net trade debt of around ú20 billion; expresses further concern that the late payment of commercial debt is forcing an estimated 10,000 small firms out of business each year and restricting the cash flow of countless others; recognises that the Government is failing to lead by example given the outstanding ú55 million DEFRA still owes contractors for work carried out during the foot and mouth epidemic, as highlighted by the Forum of Private Business; condemns the fact that around 73 per cent. of companies are failing to meet their legal obligation to file details of their payment records in their annual reports and laments the fact that the DTI is failing to ensure that this legislation is enforced properly; and therefore calls upon the Government to lead by example by settling its own outstanding debts, introducing an annual register to name and shame those plcs that consistently fail to pay their bills on time, introducing a single standard for reporting payment records and imposing tougher penalties on those companies that fail to disclose these details as required by law.

This motion has been signed by a total of 49 MPs, 1 of these signatures have been withdrawn.