The State has paid more than €400,000 in interest and penalties over late payments to hotels, bed and breakfasts and hostels that provided accommodation to Ukrainian refugees.
The requirement to pay interest on outstanding payments stems from the European Communities (Late Payment in Commercial Transactions) Regulations 2012.
Figures released by the Department of Children, Equality, Disability, Integration and Youth to RTÉ News show that from 1 March 2022 to 3 March 2023 the State has paid €435,859.94 in overall interest and penalties to accommodation providers who have suffered delays in payments.
Last month, the Department confirmed to RTÉ News that “Prompt Payment Interest applies where significant delays occur on the department’s side”.
A spokesperson said that “if a provider sends a flawed, incomplete or incorrect invoice which results in a delay, no penalty applies” but “if the delay occurs as a result of issues on our side, it applies.”
Figures released in February to RTÉ’s News at One programme showed that the Department had spent more than €564m on accommodation needs as part of its Ukrainian Accommodation and Related Services plan, and that there was around €41m outstanding in payments.
When updated figures were requested by RTÉ News this week a spokesperson said: “it is not possible to provide the update you require.”
Last Friday the Cabinet heard that steps were being taken to move staff from other agencies to the Department of Integration to speed up payments to hotels that have provided accommodation to refugees.
A Department spokesperson confirmed that “additional staffing resources continue to be assigned,” and again said that the Department “regrets any delays in making payments and is working diligently to clear any payment backlogs based on valid invoices received.”
State charged more than €400,000 over late payments
Source: Viral Trends Report
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