· Information Campaign to highlight harm being done to businesses as a result of late payments and explain measures taken, nationally and at EU level, to combat this issueMinister for Small Business, Mr. John Perry, T.D., today [Tuesday] announced plans to launch a national Late Payment Information Campaign later this year. The aim of the information campaign is to highlight the issue of late payments amongst public authorities, businesses and other interested parties. It will provide businesses with information on the recent EU Late Payment Directive (transposed in March this year) and measures taken at both national and EU level, to combat this issue.
Speaking on the announcement, Minister Perry said: “The Irish Government is acutely aware of the importance of the small business sector, its potential for generating employment and the many issues currently facing Irish companies, particularly SMEs, including the issue of prompt payments.
“Companies providing goods and services need cash flow certainty and are entitled to expect that their payments will be made in a timely manner. For SMEs, any disruption to cash flow can mean the difference between solvency and bankruptcy. Such insolvencies lead to job losses and can be a personal tragedy for the individuals involved.”
The EU Late Payment Directive is aimed at improving payment practices in commercial transactions between businesses, and businesses and public authorities. Its main provisions include the setting of a maximum period for the receipt of prompt payment for good and services, the simplification of procedures for pursuing late payments, and the establishment of penalties for late payments.
Minister Perry added: “It can be particularly difficult, and sometimes very costly, for SMEs to stand up for their right to be paid on time. That is why, in order to protect European businesses and in particular SMEs against late payment, the EU adopted a new Directive known as the Late Payment Directive on 16th February 2011. This Directive was transposed into Irish law and came into effect on 16th March this year.
“I believe this campaign is very important. Not only will the campaign highlight the harm being done to businesses as a result of late payment, it will also explain the measures taken, both nationally and at EU level, to combat this issue.”
The information campaign will also provide a forum for sharing best practice to help SMEs obtain prompt payment.
ENDS
For further information contact:
Press Office, Department of Jobs, Enterprise and Innovation, Tel: 01 631 2200, press.office@djei.ie
Note for Editors:
The information campaign, which will consist of a series of seminars in various locations throughout the country, will be rolled-out later this year, starting in Dublin in December
Confirmation of other venues, dates and times will be announced at a later date.