Dáil Éireann Debate, Tuesday - 25 March 2025
310. Deputy Albert Dolan asked the Minister for Enterprise, Trade and Employment the legal or policy framework underpinning the requirement for public sector bodies to submit prompt payment reports, referencing Government Decision S29296 and any related legislation or guidelines. [13508/25]
View answerThe issue of 'late payment in commercial transactions' is governed by the European Communities (Late Payment in Commercial Transactions) Regulations 2012 - SI 580 of 2012 as amended. The purpose of these regulations is to give legal effect to Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011 on combating late payment in commercial transactions.
The legislation requires that commercial transactions for all goods and services where the purchaser is a public authority, should be paid for, on receipt of valid invoice, within 30 days or such payments will incur late payment interest and compensation for recovery of costs.
Since 2009, central government departments have been obliged to pay their suppliers within 15 days of receipt of a valid invoice (Government Decision of 19 May 2009). This policy initiative was implemented to improve their respective payment times to assist the cash flow of businesses. A requirement that all departments report to my Department on the implementation of these arrangements was also included.
Subsequently, the 15-day prompt payment requirement was extended beyond central government departments and rolled out to the Health Service Executive, the Local Authorities, State Agencies and all other Public Sector Bodies (excluding Commercial Semi-State bodies) (Government Decision of 2 March 2011 and Government Decision of 8 March 2011 refer). This included the requirement for each body to report quarterly to its parent department on performance in respect of these arrangements.
