Written question WQ87142
- Asked by
- James EvansConservative
- To be answered by
- Minister for Economy
- Tabled
- Due
- Answered
- Time to answer
- 7 days
Question
What is the Welsh Government doing to ensure companies fast-track payments to small suppliers?
Answer
Answered by Minister for Economy
Welsh Government recognises the critical role SMEs play in the delivery of public sector projects but also the risks that sub-contracting arrangements can present for them, particularly cash-flow problems that can arise due to payment terms.
Welsh Government’s Project Bank Accounts (PBA) policy promotes the use of PBAs which are ring-fenced bank accounts with trust status that act solely as a mechanism for making payments and replace the traditional multi-layered payment terms between subsequent tiers in the supply chain by facilitating simultaneous payment to all contractors and sub-contractors
The use of PBAs aligns with the Wales Procurement Policy Statement 2021’s vision for Procurement in Wales, specifically Principle 5 that promotes support for Welsh Government policy objectives relating to progressive procurement, including those which nurture resilient local supply chains.
Duties about prompt payment in supply chains are included in the Social Partnership and Public Procurement Bill that is currently being scrutinised by the Senedd.