Departmental Billing

Defence written question – answered at on 27 July 2010.

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Photo of Jeremy Lefroy Jeremy Lefroy Conservative, Stafford

To ask the Secretary of State for Defence what percentage of payments made by his Department to (a) small and medium-sized enterprise suppliers and (b) all suppliers were made (i) within 10 days of receipt of invoice and (ii) on the agreed payment terms in the last three months for which information is available.

Photo of Peter Luff Peter Luff The Parliamentary Under-Secretary of State for Defence

10-day payment information currently available for the Ministry of Defence (MOD) and its Trading Funds for all suppliers is provided in the following table.

Invoices paid within 10 days of receipt
April 2010 98.67

Since 1 May 2010, the Department began measuring performance against a target of payment within five working days. Data available against the new target is provided in the following table and is published on the MOD's website at:

I nvoices paid within five days of receipt
May 2010 94.06
June 2010 95.47

Agreed terms of business would require the MOD to pay correctly presented invoices within 30 calendar days. MOD achievement against this target, excluding the Trading Funds, is provided in the following table.

I nvoices paid within 30 days of receipt
April 2010 99.6
May 2010 99.6
June 2010 99.4

We have made no separate assessment of the time taken to pay small and medium-sized enterprises.

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