Deering Welcomes Confirmation that Late Payments Directive will come into force next month

5th February, 2013

05.02.2013

 Carlow Fine Gael TD, Pat Deering, has welcomed confirmation from the Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, that the Late Payments Directive will come into force next month.  Minister Bruton confirmed that he has signed a Statutory Instrument that will bring the Directive into force on March 16th 2013.

 “The Late Payments Directive will have a hugely positive impact on small and medium businesses across the country, which rely on prompt payments to maintain liquidity and stay in business. The prompt payment for goods and services is critical to the functioning of every business, and it’s something that this Government has been determined to implement.”

 “Anyone who runs or owns a small business knows how important it is to be paid on time for the goods or services you provide. This EU Directive sets out specific deadlines for the payment of invoices, and it says that compensation will have to be paid where payments on commercial transactions are late. The introduction of this Directive means that even if a payment date is not set out in the contract, the business which is owed money will still be entitled to interest on late payments once certain time limits run out. Interest will be incurred if invoices are not paid within 30 days, unless there is a specific agreement signed by both parties.”

 “These changes will have a number of positive effects and should discourage debtors from paying late, while providing creditors with measures to exercise their rights when they are paid late and as this Directive is being implemented across Europe, it will create a level playing field among all EU Member States, which will be of particular importance for Irish exporting companies.

 Deputy Deering concluded “this should lead to paying on time becoming the norm, and all businesses big or small, will have to accept that they will be penalised if they pay late. This will significantly improve the cash flow of small businesses, which is crucial for economic growth and job creation.”