Jackie Baillie – Labour
The SNP government’s record of paying bills on time is getting worse, with almost 1 in 4 bills not paid on time.
SNP Finance Secretary Derek Mackay has admitted that almost a quarter of undisputed invoices were not paid on time by the Scottish Government and the bodies which share its finance system between April and October this year. The number of undisputed invoices paid within five days has fallen from 81 per cent in 2011/12.
Labour said late payments have a major knock-on effect for firms that need the cash flow to keep trading.
The SNP government’s Business Pledge scheme, designed to encourage the private sector towards ethical business practices, includes a ‘prompt payment’ criteria.
Labour’s manifesto for the 2017 General Election pledged to declare war on late payments by using government procurement contracts to ensure that anyone bidding for a government contract pays its own suppliers within 30 days.
It also pledged to develop a version of the Australian system of binding arbitration and fines for persistent late-payers for the private and public sectors.
Labour Shadow Cabinet Secretary for the Economy, Jackie Baillie said:
“Late payments can stop our small businesses from growing, and it is simply ridiculous that the Scottish Government is so bad at it, with nearly one in four bills not being paid on time.
“This has a real knock on effect for small and medium sized enterprises on government contracts which need the cash flow to keep trading.
“The SNP government should set a new target to have 100 per cent of undisputed bills paid within five working days. This would set good practice for business and make sure organisations on government contracts are getting their payments on time.
“Ministers should also ensure no public contract or taxpayer grant goes to a company that fails to pay the bills on time. This is taxpayer money – we should lay down the rules.”
NOTES
4 December 2017
Jackie Baillie (Dumbarton) (Scottish Labour): To ask the Scottish Government what proportion of undisputed invoices to each (a) of its directorates, (b) of its agencies and (c) non-departmental public body was paid within five days in each year since 2011.
Derek Mackay: The Scottish Government does not hold this information broken down by Directorate or agency, nor do we hold this information for non-departmental public bodies. However, we have provided in the following table, combined figures for The Scottish Government and bodies who share its finance system.
|
Financial Year |
Number of undisputed invoices paid within 5 days |
|
2011-12 |
81.3% |
|
2012-13 |
79.9% |
|
2013-14 |
80.3% |
|
2014-15 |
77.8% |
|
2015-16 |
79.6% |
|
2016-17 |
79.6% |
|
2017-18 (April-October) |
77.4% |
West Dunbartonshire Councillor Martin Rooney 