SECTION 1 - INTRODUCTION
1.1 A Directive of the European Parliament and of the Council on combating late payment in commercial transactions (Directive 2000/35/EC) was adopted on 15 June 2000. It has to be implemented by all Member States by 8 August 2002. The Directive introduces new rights and remedies for businesses suffering late payment by their customers.
1.2 This document sets out the proposed approach and options for implementing the Directive. In doing so, we will actively consider the UK Better Regulation Task Force's five key principles of good regulation:
· Transparency - by being open, and keeping the guidance simple and user-friendly
· Accountability - to Ministers and Parliament, and to users and the public
· Targeting - by focusing on the issue and minimising the side effects
· Consistency - by ensuring that people know where they stand
· Proportionality - by fitting the remedy to the risk and only regulating when we need to
1.3 We plan to implement the Directive in such a way as:
· to ensure that the scope of the Directive, its meaning and the implications are as clear as possible;
· not to undermine existing regulatory and self-regulatory procedures;
· not to place undue burdens on business, particularly small and medium sized enterprises (SMEs); and
· to avoid over or under implementation.
1.4 We are anxious to receive views from a wide range of interests, and especially from small firms and their representative organisations, the legal profession, and representatives from the banking, and accountancy sectors. The views expressed will be taken into account when drafting the regulations.
1.5 A copy of the Directive is at:
http://europa.eu.int/eur-lex/en/lif/dat/2000/en_300L0035.html
New Regulations will be required to implement the Directive and we propose to circulate these in draft for comment, building on the response to this consultation.
1.6 A Regulatory Impact Assessment (RIA) is required for all new Regulations. A partial RIA can be found at Annex A. Views would be welcomed on any costs, savings or other benefits that would be expected to result from the proposed legislation and the approximate value and source of those costs/savings/benefits. Only with information provided through this consultation can a full RIA be prepared.
1.7 The responses to this consultation, together with results from discussions with industry specialists, will be important in ensuring that we implement the Directive effectively whilst meeting business needs. We hope you will be able to find the time to let us have your views. A summary of questions is set out in Section 14 of this consultative document.
1.8 You should submit your responses by 5 October 2001 to:
Andrew McConnell
Enterpriseand Lifelong Learning
Scottish Executive
Meridian Court
5 Cadogan Street
Glasgow
G2 6AT
Tel: 0141 242 5547
Fax: 0141 242 5687
Email: Andrew.McConnell@scotland.gsi.gov.uk
ENGLAND ,NORTHERN IRELAND &WALES
1.9 The Small Business Service has issued its own consultation document prior to implementing the Directive in England, Wales and Northern Ireland. This document can be accessed at www.businessadviceonline.org/consult.
OPEN GOVERNMENT
1.10 Unless you specifically request otherwise, your comments will be made available publicly, on a non-attributable basis, under the Code of Practice on Open Government. Please let us know if you wish your response to remain confidential.