Businesses are criticising the local authority for its late payments
In a joint letter addressed to President Louis Mussington dated 8 July, MEDEF Saint-Martin, the Construction Industry Federation, the FTPE, the Architects’ Association and the Retailers’ Association (AEC), with the support of the Saint-Martin Inter-professional Consular Chamber (CCISM), have drawn attention to a situation that has now become particularly worrying and which directly threatens the territory’s economic activity.
“For several years now (more than two years) and, in particular, since 2022, businesses have been experiencing recurring problems with the procedures for accepting completed works, validating work carried out (which is mandatory in the case of factoring), authorising payments and settling invoices owed by the local authority. This situation reflects a lack of consideration for local businesses which, despite numerous attempts to resolve the issue, continue to face excessive processing times that jeopardise their cash flow, their jobs and their ability to invest.” In this letter, a copy of which has been sent to the Prefect, they highlight payment delays that far exceed the statutory time limits – often exceeding 95 days – the lack of a consistent and transparent system for prioritising invoices to be settled, the systematic failure to pay statutory interest on late payments—despite this being due when legal payment deadlines are exceeded—and ERDF projects that have still not been reimbursed. Some businesses are being forced to issue formal notices of default, to request compulsory payment orders from government departments, or to take legal action; the administrative court has already ordered the Regional Authority to settle more than €2.62 million in public debts owed to five companies (see our edition of 26 June). All economic stakeholders have called for an emergency meeting, on 27 July, with the Collectivité and the Prefecture’s government departments to establish a timetable for clearing the arrears, to settle the interest on arrears and the pending ERDF files, and to restore payment terms compatible with the continuation of public investment.
