Payment pledge not being met

LESS THAN half of payments by the Departments of Justice and the Taoiseach to suppliers were made within 15 days of invoicing…

LESS THAN half of payments by the Departments of Justice and the Taoiseach to suppliers were made within 15 days of invoicing, despite the Government’s pledge to meet this improved payment deadline.

Figures obtained under the Freedom of Information Act show more than 54 per cent of payments by the Department of Justice were made after the new target date had passed.

In May, the Cabinet agreed the deadline for departments paying suppliers would change from within 30 days of invoicing to 15 in an effort to ease the cash flow crisis facing Irish businesses.

The new rule came into force on June 15th, with all departments required to send a quarterly report to the Department of Enterprise, Trade and Employment.

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The figures released to The Irish Times, relating to the period from June 15th to September 30th, show the Department of Justice was the slowest to pay its bills to suppliers.

A total of 8,587 payments worth more than €49.5 million were made by the department in the quarter.

Just over 45 per cent of payments – representing 3,900 payments to the value of €43.7 million – were paid within 15 days. More than 52 per cent of payments – representing more than 4,500 payments to a value of €5.6 million – were made within 16 to 30 days.

Another 180 payments were made after 30 days, while a further 178 invoices are disputed.

At the Department of the Taoiseach, 47 per cent of payments were made by the target date and more than 45 per cent were made within 16 to 30 days. The department made a total of 495 payments, to a value of €2.57 million.

The Department of Social and Family Affairs made 5,590 payments worth more than €136 million in the same quarter.

A total of 13 per cent of payments were made after 30 days, and 35 per cent were made within 16 to 30 days. Meanwhile, 52 per cent of payments, worth more than €130 million, were paid within the 15-day deadline.

The department which paid its bills most promptly was the Department of Health, with 100 per cent of payments to a value of €89.8 million made within 15 days.

The Department of Transport paid €686 million, according to the figures, and almost 98 per cent of payments were made within 15 days of invoicing.

About 84 per cent of payments were made on time by the Department of the Environment, Heritage and Local Government, which paid €488 million to suppliers, and the Department of Education and Science, which paid €185 million.

The same percentage applied to the Department of Communications, Energy and Natural Resources, which paid €118 million, and the Department of Enterprise, Trade and Employment, which paid €42.5 million.

The Office of Public Works’ figure was almost 83 per cent. It paid more than €117 million to suppliers in the period.

Revenue paid suppliers €34 million and made more than 99 per cent of payments within 15 days.

The Department of Community, Rural and Gaeltacht Affairs made 94 per cent of payments within deadline.

The Department of Defence figure was almost 92 per cent.

More than 90 per cent of payments were made by the Department of Finance within the new limit, with the Department of Agriculture, Fisheries and Food following on more than 89 per cent.

Arts, Sport and Tourism, and Foreign Affairs, made 86 per cent of their payments within 15 days.

Mary Minihan

Mary Minihan

Mary Minihan is Features Editor of The Irish Times