Question Time - 10 day prompt payment

Tuesday 16 March 2010

(Finance and Personnel)

Public sector bodies have been instructed to pay all invoices within 10 days to assist firms who may be encountering problems during the economic downturn.

5. Mr Burns asked the Minister of Finance and Personnel to outline the general level of compliance with the 10-day payment rule throughout the public sector. (AQO 949/10)

The Minister of Finance and Personnel (Sammy Wilson): I am committed to ensuring that the 10-day prompt payment target is met as far as possible across the public sector. That is a particularly challenging target, because we must balance the need to ensure that public money is paid to those who provide goods or services against the need to ensure that invoices are properly authorised, approved and accounted for. It is, therefore, a balancing act.

The processing of invoices for Northern Ireland Civil Service Departments is carried out on a centralised basis through Account NI, which is one of the shared services delivered by my Department. However, the process is strongly dependent on suppliers and Departments ensuring that invoices are submitted correctly. I saw some of the difficulties that can arise when I visited the processing operation. Those difficulties are not always caused by the Departments. In fact, they are sometimes caused by the suppliers. Separate and more disparate arrangements are in place in the wider public sector, for which I am not responsible.

Mr Burns: Will the Minister tell the House whether there is any substance to the rumours that some arm's-length bodies, such as the health trusts, are not making a serious attempt to achieve the 10-day target? Does he have any figures on that?

The Minister of Finance and Personnel (Sammy Wilson): The wonderful file that my officials gave me contains many answers. As the Member was asking his question, I flicked over the page, and it just so happens that I found the very figures that he requested. The first part of his question was whether the health trusts are trying to achieve the 10-day target. I cannot comment on whether the health trusts are making an effort to do so, whether they have made it a priority or whether the Health Minister has given them directions on payment. The Member should, therefore, take up that matter with the Health Minister.

I do not have figures for the individual trusts. However, across the health trusts, the compliance rate for the 10-day target varies from 32% to 48%, which is considerably below the almost 60% compliance rate that Account NI achieves.

Mr T Clarke: I do not want to take away from the Minister's answer about the health trusts. However, I am intrigued by Mr Burns's question, given that it took the Department for Social Development (DSD) 218 days to pay an invoice, which is a whole lot more than 10 days.

The Minister of Finance and Personnel: I do not wish to comment on an individual invoice, and I would not like to think that that gives a clear picture of that Department's performance. The processing of an invoice involves a host of factors. Account NI has been trying to educate Departments and suppliers on how to get an invoice processed quickly. Invoices must contain all of the relevant information, and suppliers should be made aware of what information is required, such as job numbers, so that the invoice can be processed quickly. The 10-day period is measured from the day on which Account NI receives the invoice from the Department, and about 60% of invoices are processed within 60 days. Many of those that are not processed in 60 days are returned because of inadequate information.