Contracts
14/07/2006 08:44
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The chief executive of the Forum of Private Business (FPB), Nick Goulding, will today accuse large retailers of unscrupulous procurement practices.
In a speech to the Association of Credit Professionals, Mr Goulding plans to highlight the "growing trend" for large supermarkets and leading high street vendors to mistreat their suppliers, who "live in fear" of clients they depend on for business.
The FPB would like to see the government impose tighter controls on such practices and do more to aid small suppliers.
"There is a growing trend for large retailers to pass the cost of difficult trading periods or even expansion onto their suppliers," Mr Gould said in a statement. "It is wholly unacceptable that these unfair practices go unchecked, they are abuses of buying power."
The Late Payment of Commercial Debts (Interest) Act dictates that delayed payment of commercial debt grants suppliers Statutory Right to Interest (SRI) at a rate of eight per cent above the base rate. Yet current legislation only makes SRI optional.
"The European Late Payment Directive is currently under review and the FPB would like issues such as the mandatory imposition of SRI looked into," Mr Gould added.
The suppliers of high street retailers Matalan and New Look are currently being defended by the FPB following disputes over payment terms.
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