Financial: Late payment The Department of Trade and _Nr r - t e
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Industry has published the Late L Payment of Commercial Debts (Interest) Bill. If enacted, this will
introduce a statutory right for some businesses to claim interest on late payment The interest rate will be set at 8%, reflecting the rate small firms are charged for agreed overdrafts.
The Government wants to encourage businesses to agree their own contractual terms, including a right to charge interest on late payment. However, the bill will include provisions to prevent customers "contracting out" of the legislation by setting excessively low interest rates or long payment terms.
The Bill is available for £2.30, from the Stationery Office, phone 0171 873 0011. A summary of responses to the Green Paper (entitled Improving the Payment Culture: A Statutory Right to Claim Interest on Late Payment of Commercial Debt) is available free from the DTI, phone 0171 215 0267.
Restrictive trade regulations
Two new sets of restrictive trade regulations came into effect on 9 January.
The Restrictive Trade Practices (Non-notifiable Agreements) (Sale and Purchase, Share Subscription and Franchise Agreements) Order (SI 1997 No 2945) removes the requirement for sale and purchase, share subscription and franchise agreement details to be given to the Office of Fair Trading, as long as they do not contain price-fixing agreements.
The regulations cost £1.55 from the Stationery Office, phone 0171 8730011.
The Restrictive Trade Practices (Non-notifiable Agreements) (Turnover Threshold) (Amendment) Order (S1 1997 No 2944) raises the threshold below which agreements do not need to be notified to the OFT.
For parties with a combined UK turnover, the threshold will rise from £20m to .£50m.