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Government Departments: Promptness of Payments
Lord Stone of Blackheath asked Her Majesty's Government:
- What proportion of bills were paid on time by government departments and their agencies during financial year 1999-2000.[HL3736]
Lord Sainsbury of Turville: I am pleased to announce that there has been a further improvement in the payment performance of central government as a whole. The overall payment performance shows that 97.8 per cent of suppliers' bills were paid on time and departments are making good progress towards meeting the 100 per cent target set for this financial year.
There is no room for complacency. It is particularly important that the public sector sets an example to business and is seen to pay its bills on time. I am disappointed to see that a number of departments and agencies failed to meet this year's target of 100 per cent. I have taken steps to remind all departments and agencies of the importance of paying suppliers' bills on time and meeting the target.
I am particularly disappointed at my own department's failure to meet the target. It is unacceptable that the department which has overall responsibility for the Government's policy on prompt payment should itself fail to meet the target. My officials are introducing new measures designed to ensure that the DTI meets the target as soon as possible this year.
The Government are committed to improving the UK's payment culture. Late payment is a serious problem, particularly for small businesses. Not knowing when the customers' bills will be paid means uncertain cashflow, increased borrowings, higher costs and reduced profits.
Government departments and their agencies are required to monitor their payment performance and to publish the results in their departmental or annual reports. The following table lists, by department, the proportion of bills paid within 30 days, or other agreed credit period, of receipt of a valid invoice for financial year 1999-2000.
| Main Departments | Paid on Time (Percentage) |
| National Weights & Measures Laboratory(1) | 100.00 |
| National Investment and Loans Office | 100.00 |
| Privy Council Office | 100.00 |
| Radiocommunications Agency(1) | 99.98 |
| Registry of Friendly Societies | 99.90 |
| Ministry of Defence | 99.77 |
| Department for Culture, Media and Sport | 99.59 |
| Land Registry | 99.26 |
| Patent Office(1) | 99.13 |
| Office of Water Services | 99.07 |
| Public Records Office | 99.06 |
| Ordnance Survey | 98.90 |
| Government Actuary's Department | 98.84 |
| Export Credit Guarantee Department | 98.60 |
| Insolvency Service(1) | 98.56 |
| HM Treasury | 98.51 |
| Office for National Statistics | 98.51 |
| Office of Fair Trading | 98.49 |
| Office for Standards in Education | 98.40 |
| Office of the Rail Regulator | 98.20 |
| HM Customs & Excise | 98.06 |
| Inland Revenue | 97.98 |
| NI Dept. Health Estates | 97.95 |
| Foreign & Commonwealth Office | 97.90 |
| Intervention Board for Agricultural Produce | 97.81 |
| Office of Telecommunications | 97.68 |
| Health & Safety Executive | 97.58 |
| Northern Ireland Office | 97.56 |
| Crown Prosecution Service | 97.50 |
| Lord Chancellor's Department | 97.42 |
| Charity Commission | 97.39 |
| Department for Education & Employment | 97.31 |
| Forestry Commission | 97.30 |
| NI Dept of Education | 97.28 |
| Government Communications HQ | 97.14 |
| PFO (GCHQ) | 97.14 |
| Department for National Savings | 97.10 |
| Department for International Development | 96.82 |
| Office of the Parliamentry Commissioner for Administration and Health Service Commissioners | 96.48 |
| Home Office | 96.34 |
| NI Court Service | 96.32 |
| Cabinet Office (OPS) | 96.24 |
| Department of Health | 95.28 |
| Department of Social Security | 95.14 |
| Shadow Strategic Rail Authority | 94.78 |
| Department of the Environment, Transport and the Regions | 94.70 |
| Serious Fraud Office | 94.49 |
| Royal Parks Agency(2) | 94.00 |
| NI Dept. Environment inc. agencies | 93.05 |
| Treasury Solicitors Department | 93.05 |
| Department of Trade and Industry | 93.00 |
| Employment Tribunal Service(1) | 93.00 |
| NI Dept of Agriculture & Rural Development | 92.83 |
| Companies House(1) | 92.34 |
| Royal Mint | 91.00 |
| NI Department of Finance and Personnel | 90.22 |
| Ministry of Agriculture, Fisheries & Food | 89.51 |
| Overall Total | 97.89 |
Notes:
(1) Are Agencies of the Department of Trade and Industry
(2) Is an Agency in the Department for Culture, Media and Sport