Justin Madders, MP for Ellesmere Port and Neston, has given his backing to a Parliamentary bill that calls for payments on government and public authority contracts to be made through a ‘project bank account’ system ensuring small businesses are paid directly and on time.
The Public Sector Supply Chains (Project Bank Accounts) Bill was presented in Parliament with cross party support and aims to set in law the requirement that parties delivering government and public authority work – from the lead contractor right down the supply chain – will receive payment from the same secure ‘pot’ of money.
“I’m supporting this ten minute rule bill because it is only right that government and public authority projects should be setting the standard for making sure that supply chains are paid promptly and on time for work done and project bank accounts are one way to ensure this happens.
“Late payment by large businesses is a massive issue across all business sectors leading to billions of pounds being owed to smaller companies for work that has been done.
“When payments take a long time working their way along a supply chain from the contracting government department or public authority there is a risk that the cash could be cut-off at any time because of payer insolvency as happened with Carillion last year.”