Rosie Winterton
visited Seevent Plastics near Brighton to highlight the importance
of ensuring that companies pay their suppliers promptly, without
changing their agreed terms.
The Minister urged businesses to sign up to the Prompt Payment
Code, which aims to encourage better payment performance between
businesses. Regional Minister for the South East, Jonathan Shaw,
will also write to local councils, public sector bodies and
business groups in the region to encourage them to sign up to the code.
Over 750 companies in the South East failed during 2008 because
of late payment and the region’s companies will pay over £33m in
unnecessary interest charges because of overdue payments this
year.
Visiting Seevent Plastics - one of over 350 companies that have
already committed to the code - Rosie Winterton, Minister for
Regional Economic Development said:
“Prompt payment remains the biggest financial challenge faced by
firms and in many cases late payment is the difference between
life and death for a business.
“We are taking this issue seriously, that’s why all government
departments have signed up to the Code and are going a step
further by paying nine out of ten invoices within ten days. We’re
also providing advice and support - 80,000 Managing Cashflow
guides have been downloaded since last November.
“I want to see more companies acting responsibly and paying their
invoices promptly and without changing their agreed contractual terms.
“Seevent are a great example of good business – they manage their
own cash flow and ensure they pay suppliers on time. That’s why
I’m here in Lancing to encourage more companies to follow their
example and sign up to the Prompt Payment Code”
Ken Fisher, Managing Director of Seevent said:
“”We at Seevent believe that the payment of invoices on time is a
major part of the contract between supplier and customer. The
customer rightly complains if his goods are late in arriving and
therefore should honour his part of the contract by paying on
time. At Seevent we pride ourselves on our payment record”
Pam Alexander, Chief Executive of the South East England
Development Agency said:
"SEEDA is working in close partnership with the
Government on the Prompt Payment Code. This issue has been a high
priority for the South East Economic Delivery Council and all
partners are committed to addressing it - both for public sector
contracts and in working with major corporates through the
business membership organisations on the Council.
“SEEDA backs the Prompt Payment Code and we have worked very hard
to ensure we pay our own suppliers as quickly as possible to keep
cash flow moving during the recession. We are currently paying 96%
of uncontested invoices within 8 days, so our money is in supplier
bank accounts within 10 days."
Organisations in both the public and private sector can sign up
to the Prompt Payment Code by visiting www.promptpaymentcode.org.uk
Notes to Editors
1 The Prompt Payment Code website -
http://www.promptpaymentcode.org.uk/ - outlines what is expected
of companies that wish to sign up to the Code. The Code has been
developed by the Institute of Credit Management, the Confederation
of Business and Industry, Institute of Directors, Forum of Private
Business, Federation of Small Businesses and British Chambers of Commerce.
2 Managing Cashflow guides can be downloaded from
http://www.creditmanagement.org.uk/berrguides.htm
3 Figures used are based on data from the February 2009 Barclays
Late Payment Survey.
4 Rosie Winterton is the Minister for Regional Economic
Development and Coordination. For more information about Rosie,
please see http://www.berr.gov.uk/aboutus/ministerialteam/page51721.html
5 Jonathan Shaw MP was appointed as Regional Minister for the
South East in June 2007. He is also Minister for Disabled People
at the Department for Work and Pensions and MP for Chatham and Aylesfor
Department for Business, Innovation
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