UK SMEs will welcome the comments made by
business leader and former trade minister, Lord Digby Jones, that the
government backed Prompt Payment Code is failing and more power needs to be put
in place for it to have any reasonable effect.
That’s the view
from Eazipay Ltd, the UK’s largest Direct Debit processing company, which
set-up an online e-petition
in February 2013 calling on the government to take much firmer action to help
small businesses get paid on time.
As part of a report
for 5 Live Investigates on BBC 5 Live on Sunday 13th October, Lord
Jones said that the Prompt Payment Code was ineffective and has certainly not
worked; adding that it was simply a nice statement of intent.
“Like us, we’re
certain that UK SMEs will welcome Lord Jones’ comments regarding the Prompt
Payment Code”, says Ron Bradney, Managing Director at Eazipay, adding, “The
Code is simply not fit for purpose. It is an open secret that it is being
cynically manipulated by companies who want to look as if they pay promptly,
while in effect doing the exact opposite.
“At a time of
national austerity when even large High Street companies are going bust, it is
a national scandal that SMEs are being starved of cash by customers who have
the resources to pay their bills, but cynically choose not to.”
In order to force
the national scandal of late payments further up the political agenda, Eazipay
launched an e-petition,
which, when it generates enough support will trigger a late payments debate in
the House of Commons.
“The Prompt Payment
code has really lost its focus”, adds Mr Bradney. “The £30 billion of debt owed
to SMEs, coupled with unacceptable waiting times, is damaging businesses on a
day-to-day basis. The government in the
shape of Michael Fallon’s Department for Business Innovation and Skills, needs
to step up to the plate and tackle this issue head on rather than turn a blind
eye and hope it all goes away.
“In all honesty, it
is hard to see what purpose the Prompt Payment Code actually serves.”
For more
information and to view and sign the e-petition visit: http://epetitions.direct.gov.uk/petitions/46143
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