Department for Business, Innovation and Skills
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Big businesses pledges to pay fair and sign up to prompt payment
Business Minister, Shriti Vadera, today met with leaders from big business and urged them to "pay fair" and sign up to the Government's Prompt Payment Code.
11 new high profile companies have committed to sign-up to the Government's Prompt Payment Code, and pay their suppliers promptly as set out in their contractual agreements. Companies include Barclays, Sony UK and B&Q.
The pledges were made at a breakfast Seminar at the Department for Business to promote good payment practice and coincide with the launch of the Government's new information leaflet, 'Paying on time is good for businesses'.
Business Secretary Lord Mandelson said:
"Government has taken the lead with nine out of ten central Government invoices now being paid within ten days - the challenge is now for business to step up and play fair.
"The promise by FTSE companies to pay on time is very welcome and will hopefully bring an end to the devastating impact which late payments can have on small business".
Business Minister Shriti Vadera went on to say:
"Late payment can be the final straw for small business in the current climate. So the commitment here today by major companies heading up supply chains to pay on time is a win for all businesses".
The Code is just one of a number of Government measures aimed at establishing a better payment culture and follows on from a commitment made by the Prime Minister in October to pay all central Government suppliers within ten days.
The Business Secretary will continue to press the remaining FTSE companies to commit to paying on time and will today write to each FTSE company that failed to attend the Summit, challenging them to sign up to the Code.
Notes to editors:
Agreed to sign Committed in principle
Barclays plc Cisco
Motorola UK Ltd BAT
Standard Chartered Yahoo UK
Sony UK HSBC
Sky Sainsbury
Centrica plc Alliance Boots
British Airways plc RSA Insurance Group plc
Imperial Tobacco Cobham plc
B&Q WPP Group plc AMEC
Research and Motion Attendees already signed up
(BlackBerry) Lloyds Banking Group plc
National Grid PLC
Royal Dutch Shell PLC
Tesco
Asda
Details of signees to Code
Details of those businesses and organisations signed up to the code can be found: http://212.36.97.5/ppc/signatory.a4d
Explanation / definition of code
* Pay suppliers on time
- within the terms agreed at the
outset of the contract
- without attempting to change payment
terms retrospectively
- with no change in either contractual
payment terms or the usual payment period during the downturn
* Give clear guidance to suppliers
- providing suppliers with
clear and easily accessible guidance on payment procedures
-
ensuring there is a system for dealing with complaints and
disputes which is communicated to suppliers
- advising them
immediately if there is any reason why an invoice will not be paid
to the agreed terms
* Encourage good practice
- by ensuring that contractual
terms with lead suppliers include a requirement to ensure that the
code is adopted throughout their own supply chains
How to sign
Go to: http://www.promptpaymentcode.co.uk
* Click on the 'Apply' button.
* Complete the
on-line form with your details and nominate two referees to
confirm you pay promptly
* Contact your referees to make sure
they will support your application
* Let them know that they
will receive an email asking them to confirm whether you pay
promptly by clicking the YES button
* Encourage them to sign
up too
Explanation of reference process
Businesses wishing to sign-up to the code can do so as long as their application is supported by two of their suppliers. Referees will need to confirm that the applicant pays their invoices on time. ICM will review the 'Approved Signatories' twice a year to ensure that they are still paying their suppliers promptly. This will give the Code integrity and be a genuine indication of good practice.
Government department payment times
Government is committed
to improving public sector payment performance and in March,
central Government departments paid nine out of ten invoices
within ten days - that's £66billion worth of payments
reaching business quicker than ever.
