Business: Procurement

Department for Business, Innovation and Skills written question – answered on 16th December 2014.

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Photo of Simon Hart Simon Hart Conservative, Carmarthen West and South Pembrokeshire

To ask the Secretary of State for Business, Innovation and Skills, if he will take steps to prohibit the practice of companies requiring their suppliers to make a payment to join or to remain on their lists of suppliers.

Photo of Matthew Hancock Matthew Hancock Minister of State (Department for Business, Innovation and Skills), Minister of State for Portsmouth, The Minister of State, Department of Energy and Climate Change

The Government has already taken action to prohibit this practice in certain sectors. This is why the statutory Grocery Supply Code prohibits payments as a condition of stocking or listing a supplier’s grocery products.

We are also taking forward a suite of measures to tackle poor payment practices and policies. Through the Small Business, Enterprise and Employment Bill we are introducing a reporting requirement for large businesses to report on their payment practices. As part of this work, we are consulting on what, if anything, the Government should do about supplier lists. This could include requiring large companies to report on their use in the new prompt payment report; or potentially prohibiting them.

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