Minister for Business & Employment, Ged Nash TD, today launched a new online portal aimed at encouraging businesses to pay their suppliers on time. Enterprises of all sizes in Ireland can now become signatories to the Prompt Payment Code of Conduct through the website www.promptpayment.ie
The Prompt Payment Code of Conduct has been developed by the Department of Jobs, Enterprise and Innovation, the Irish Institute of Credit Management (IICM) and the main business representative bodies – ISME, SFA, Chambers Ireland and IBEC – with support from the Banking and Payments Federation of Ireland.
Welcoming the launch of the Prompt Payment Code portal, Minister Nash said: “This is a significant step in moving towards a culture of prompt payment in Ireland. In addition to improving our payment culture, the Code is also about encouraging and promoting best practice between businesses and their suppliers. It is about companies demonstrating a real commitment to responsible business practices which in turn leads to achieving competitive advantage in the market place.”
The three primary objectives of the Code are:
- To encourage and promote best practice between businesses and their supplier
- To improve cash flow between businesses
- To drive a change in payment culture
Signatories to the Code undertake to:
- Pay suppliers on time within the terms agreed at the outset of the contract, or in accordance with legislation.
- Give clear guidance to suppliers by providing them with clear and easily accessible guidance on payment procedures. Also, by ensuring there is a system in place for dealing with complaints and disputes which is communicated to suppliers. Finally, advising suppliers promptly if there is any reason why an invoice will not be paid to the agreed terms.
- Encourage good practice by requesting that lead suppliers encourage adoption of the Code through their own supply chains.
“Getting paid on time can mean the difference between a company staying in business and going under due to cashflow problems,” continued Minister Nash. “That is why this Prompt Payment Code of Conduct portal is so important. I would like to acknowledge the important contribution made by the Irish Institute of Credit Management, the business representative bodies and the BPFI who have worked extremely hard with my Department to ensure this initiative is delivered and who are committing to building a responsible payment culture across enterprise in Ireland.”
Concluding, Minister Nash said: “For the Code to work we need enterprises to sign up and I will be encouraging all businesses, big and small, to make this important commitment. Government will be leading by example and I will ensure that all Government Departments, their Agencies and Public Sectors bodies become signatories to this Code.”
Shay Waldron, of the Irish Institute of Credit Management, said, “The IICM is delighted to be afforded the opportunity to work with the Department for Jobs Enterprise and Innovation and all stakeholders in the Prompt Payment Code. The Prompt Payment Code will bring about the necessary culture change in paying suppliers to ensure that Ireland has a level paying field with its European neighbours. To compete internationally we need to look to home first and ensure that we play fair, by paying fair.”
“The adoption of the Prompt Payment Code will ensure that suppliers and customer’s develop mutually beneficial relationships based on trust.”