Please pay up !

With cashflow tighter than ever, now is the time when local food suppliers need those invoices paid on time

Recent reports in the London press have focused on the downturn in fortunes of a number of well known restaurants. The current economic malaise has meant that notable eateries have been going into adminstration. Bound to be expected, you may say, especially in the present economic position we find ourselves in.

But spare a thought for those businesses that sell to the restaurants. Failure to honour a £40,000 meat invoice by the restaurant could result in not one, but two businesses folding. I have to say that the terms on which these invoices are met always appear to be to the advantage of the restaurant or retailer. Not only can the retailer squeeze price but payment terms are often extended. All this does is increase the pressure on the supplier, almost always a small business.

The CLA has been calling for an Independent Ombudsman to protect the interests of suppliers. Indeed, we have been saying this for the last four years. Now the Competition Commission, in their inquiry into the state of the grocery market, has agreed with us and recommended an Independent Ombudsman.

We clearly need this more than ever. Such a body would increase the credibility of the food chain and give confidence to the supplier that bills will be paid. It won't add anything to the weekly shopping bill but will create equality in the food chain.

Dr Charles Trotman – Head of Rural Business Development

An economist, advises on rural economic issues, particularly food policy, rural tourism, equine issues and telecommunications policy.

Phone: 020 7460 7939
FAX: 020 7235 4696
Email charles.trotman@cla.org.uk