The Electrical Contractors’ Association (ECA) has met with ‘Be Fair – Pay on Time’ campaign founder Debbie Abrahams MP, to voice its support for her campaign and discuss the issue of late payment.
The meeting highlighted the impact of late payment on electrical contractors and the recent Cabinet Office consultation that would require those working in the public sector to pass payment within 30 days along the supply chain.
The ECA says that only main contractors working on public sector projects that pay subcontractors within 30 days should be permitted to sign up to the Construction Fair Payment Charter, the anticipated successor to the Prompt Payment Code (PPC). In addition, those working in the private sector who wish to sign up should commit to paying their subcontractors in 60 days or less.
Paul Reeve, ECA director of business services, said, 'We want to see payment practice closely aligned with the aims of recent legislation. We very much welcome the support Mrs Abrahams has given to SMEs with her 'Be Fair – Pay on Time' campaign, and we urge the government to take direct action to address this continually damaging problem in our sector.'
Debbie Abrahams, Labour MP for Oldham East and Saddleworth, who recently held a cross-party inquiry into late payment, said, 'Ultimately a late payment culture is set at board level and won't change until we establish that late payment, or finding excuses to pay late, is as unacceptable as tax evasion.'