24 July 2008

Public sector must help the cash-flow of businesses in tough economic climate

The Northwest Regional Development Agency (NWDA) has issued a rally-call to all public sector partners in the Northwest today, to help businesses keep moving during challenging economic conditions.

At an event hosted by Private Sector Partners NW Limited, Steven Broomhead, NWDA Chief Executive promised to contact all public sector partners in the region and urge them to ensure that businesses are not hampered by slow payment from the public sector.

Steven said: “Prompt payment and cash-flow are serious issues for businesses, particularly in a tough economic climate. Businesses need to keep a tight-ship and rely on prompt payments so they can continue at a solid pace without interruption.

Delays in payments within the private sector are down to each business but the public sector in the Northwest should be operating ‘best-practice’ and ensuring that appropriate and accurate invoices from our private businesses are not delayed by slow accounting procedures in the public sector.

The 30 day target, already set, is achievable and I would like to see all public sector partners working hard to ensure this deadline in not exceeded. We all need to do our part in helping to keep the economy moving… every little helps!”

Miranda Allan, Chair of Private Sector Partners North West Limited, said: “In the current climate of economic instability, the additional pressure on cash-flow  caused by extended and unpredictable payment terms can be one burden too many for business. This move by the NWDA to honour a 30 day payment period  is most welcome. We hope to see this example of good practice in business being followed by other public sector bodies, blue chip institutions and the supply chain as a whole, in order to best safeguard the current and future welfare of the regional economy.”

- Ends -

Notes to Editors

Neil Roscoe, Senior Press Officer on 01925 400232 or mobile 07980 713282 or neil.roscoe@nwda.co.uk

For further information and to view previous press releases visit us at
www.nwda.co.uk/press

The Northwest Regional Development Agency (NWDA) leads the economic development and regeneration of England's Northwest and is responsible for:
• Supporting business growth and encouraging investment
• Matching skills provision to employer needs
• Creating the conditions for economic growth
• Connecting the region through effective transport and communication infrastructure
• Promoting the region’s outstanding quality of life