Events industry welcomes late payment inquiry

The events industry has welcomed a parliamentary inquiry into late payment by the Forum of Private Business.

Simon Hughes, Eventia
Simon Hughes, Eventia
The Forum of Private Business will give evidence at a cross party parliamentary inquiry in to late payment next week, chaired by Labour MP Debbie Abrahams.

The inquiry will examine how serious the problem has got for SMEs, but will also look at other issues around poor payment practices, including so called ‘invoice haircutting’. 

Eventia chairman Simon Hughes said the issue has been raised recently by a member of the association who said his company had suffered significantly from late payments by corporates.

"We’re discussing the issue with other organisations including the British Chamber of Commerce to gain their input on ways to handle the issue," he added.

Bluehat’s commercial director Ben Parkinson said that big corporations are often the worst payers due to protracted procurement systems and an incentive to keep money in the bank as long as possible for their own benefit.

"Three months is a long time to be waiting on payments of tens of thousands of pounds and can make life difficult for event companies. It’s a very short term strategy from large corporates who may ultimately lose the good will of a valuable supplier network," he added.

Hughes agreed, adding that stricter laws are needed to incentivise corporates to tighten up their payment processes. "This would benefit both parties’ relationships in the long run," he added.

The inquiry will hear evidence from four panels, each of which will be questioned for around 40 minutes by parliamentarians.

Alex Jackman, the Forum’s head of policy, said: "Late and slow payment amounts to little more than supply chain abuse, that is big business bullying small firms to boost their own profit margins. 

"We know from recent high profile examples that the situation, far from improving, is spiraling out of control. Hopefully this investigation can shine a light on the issue and expose the real and serious problems it causes small business."

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Register now
Already registered?
Sign in
London calling: A look at what's new and forthcoming in the capital

London calling: A look at what's new and forthcoming in the capital

Hotels, venues and activities that should be on your radar for future London-based events.

Double acquisition for Gray Dawes Group

Double acquisition for Gray Dawes Group

Acquisitions include INC. Travel Group's corporate and marine businesses and the purchase of VIP Leisure Travel Ltd.

Love is in the air for one in seven event attendees, report claims

Love is in the air for one in seven event attendees, report claims

Research by Cvent and Edelman Intelligence finds 14% have met a significant other at a B2B event.

The advantages of being a second tier city

The advantages of being a second tier city

There are benefits to not being the capital, says Bas Schot, head of congresses and events at the Hague Convention Bureau.

What to do if a disgruntled event attendee threatens legal action

What to do if a disgruntled event attendee threatens legal action

Keystone Law's James O'Flinn discusses your options and how to prevent this happening in the first place.

Speakers announced for C&IT Northern Forum

Speakers announced for C&IT Northern Forum

New event takes place between 25-26 April at ACC Liverpool, with inspiring sessions from industry leaders.

Why personalisation is the key to measuring an event's success

Why personalisation is the key to measuring an event's success

Mike Leeson, general manager Europe at ETM, explains why ROE may be a better measurement than ROI.

Oman to welcome IGRC in 2020

Oman to welcome IGRC in 2020

Sultanate to host the International Gas Union's 16th International Gas Research Conference at the Oman Convention & Exhibition Centre.

Events company faces legal action from makers of video game Fortnite

Events company faces legal action from makers of video game Fortnite

Epic Games issues claim against Exciting Events after widely criticised event in Norwich.

Diary of a delegate: Beautiful Bergen

Diary of a delegate: Beautiful Bergen

A three-day account of the C&IT A-List FAM trip, in partnership with Visit Norway.

LATEST JOBS