ISME calls for compulsory 30-day payments regime

The Government is being called on to introduce tougher legislation on late payments to businesses.

The move comes after ISME - which represents small and medium enterprises in Ireland - found only 2% of SMEs charge interest on late payments.

ISME said this was because large businesses dictate credit terms.

Late payments have fallen to 58 days on average, down from 63 last year.

Chief Executive of ISME Mark Fielding called for a statutory 30-day payments regime to be introduced.

"Legislation should be brought in to make it a 30-day mandatory (regime), rather than the 2002 legislation which is absolutely useless because it allows big business to contract out of the legislation," he said.

He added the 30-day regime could be brought in over three years, starting with 60 days in the first year, 45 in the second and finally 30 days in the third year.

"Then, everybody would be on a level playing field," he said.