MP calls for prompt payment from MoD

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GOSPORT MP Caroline Dinenage has stood up for the Ministry of Defence supply chain.

Ms Dinenage called on the government to ensure that small businesses receive prompt payment as part of their contracts with the Ministry of Defence.

She asked: ‘Prompt payment is particularly crucial for small businesses who can face really significant cash flow problems without it. Can the minister assure the house that he is doing all he can to see that small businesses are paid on time?’

Responding for the government, Philip Dunne MP said: ‘This department under this government is well aware of the benefits of prompt payment and the importance of cash flow to SMEs.

‘That’s why not only are we paying our suppliers on time, but we’re also encouraging our suppliers to pay their subcontractors within 30 days of receipt of a valid invoice.’

Afterwards Ms Dinenage said: ‘The government must be seen to set an example to other contractors by ensuring that all suppliers are paid on time and I am pleased that the MoD is leading the way.’