92000E0505

WRITTEN QUESTION E-0505/00

by Christopher Huhne (ELDR) to the Commission

(28 February 2000)

Subject: Payment of contractors and suppliers

What is the Commission's policy on the timing of payments to its own contractors and suppliers? What is the length of time between delivery or invoice and payment which is suggested in the Commission's procedures, and what, if any, action is taken to monitor whether these targets are met?

Answer given by Ms Schreyer on behalf of the Commission

(4 May 2000)

The Commission regularly checks the observance of payment periods by its departments.

In 1991 the Commission already set the target that payments should be executed within 60 days from the date of receipt by departments of a request for payment prepared in due form. Within the 60-day period, authorising departments have 40 days (for settlement and authorisation of the payment) and the horizontal departments have 20 days (endorsement by financial control, check on the validity of the discharge by the accountant, execution by the bank).

In 1995 the target set for Commission departments was that 95 % of operations should be completed within 60 days. In 1997, the Commission amended its contract policy so that in the event of late payment its creditors were entitled to claim late-interest payment.

Figures for 1999 show that across all departments the average period of payment (from the date of receipt of the invoice to the date on which the Commission bank account is debited) was 54,1 days. However, only 65,1 % of payments were completed with the 60-day period.

An interdepartmental working party consisting of representatives of financial units from the Directorates-General is currently looking into the root causes of under-performance and will propose improvements.

In Part Two of the White Paper Reforming the Commission: Action plan(1) the Commission confirms that one of the objectives of the reform is to achieve 95 % of payments within 60 days by 2002 (Action 10: Departments will be asked to set their own targets for meeting the Commission-wide target of payment in 60 days for 95 % of invoices by 2002 and to report on measures taken and results in their Annual Activity Report). The appraisal by the Commission of the outputs delivered by services will take into account this indicator.

In addition, the Commission will set up a central invoices register to allow better follow up (Action 11 of the White Paper).

(1) COM(2000) 200 final.