Since 2009, Central Government Departments have been improving their respective payment times so as to assist the cash flow of businesses. Departments are now obliged to pay their suppliers within 15 days of receipt of a valid invoice. Subsequently, and as part of the commitments in the EU/IMF Programme for Ireland, the 15 day prompt payment requirement was extended beyond Central Government Departments and rolled out to the Health Service Executive, the Local Authorities, State Agencies and all other Public Sector Bodies (excluding Commercial Semi-State bodies), in respect of valid invoices received, on or after, 1 July 2011.
It is now a Government requirement that all central Government Departments, the Health Service Executive, the local authorities and all other public sector bodies (excluding commercial Semi-State bodies) pay their suppliers within 15 calendar days of receipt of a valid invoice. This arrangement does not alter contractual relationships and does not change the legal position in relation to late payments.
As part of the 15 day prompt payment requirement, Government Departments and relevant public sector bodies are required to publish on their respective websites, their quarterly payment performance reports. Government Departments are also required to publish the quarterly composite reports covering the bodies under their aegis.