Late-payment law promised
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by Karen Miles • Hauliers may soon be able to charge interest on outstanding invoices.
In last week's Queen's Speech the new Government signalled its intention to introduce legislation allowing companies to charge interest on overdue payments.
The Department of Industry is expected to issue a consultative document in July which will help to define the length of delay which constitutes a late payment. It will also have to determine the minimum size of company to be affected by the new law, The plan has been given a ringing endorsement by the new director-general of the Road Haulage Association. Former Transport Minister and Conservative MP Steven Norris says he welcomes the Labour administration's proposal to introduce legislation on the issue, Norris estimates that a law allowing companies to charge interest on overdue payments could help at least half of his 10,000 members to reel in debts worth "hundreds of mil lions of pounds".
He estimates that many
hauliers are waiting 60 I. days for payment. "My members on the whole
are the victims of the practice, not the
perpetrators. I see merit in this legislation and applaud it," says Norris.
The Government's proposed minimum wage should be as low as possible, says
Norris, otherwise jobs in road haulage will be destroyed.