GNR, payment terms: new measures to support construction companies

The support measures unveiled by the Ministry of the Economy concern non-road diesel fuel (GNR) and administrative payment deadlines. The government has also announced that a Conseil national de la construction et de la rénovation (National Construction and Renovation Council) will be held in the near future to address issues specific to the building and public works sector.

A measure to accompany the increase in the reduced rate on RNG

In a press release published on February 13, 2024, Bruno Le Maire reveals support measures for construction companies.

In view of the decline in activity in the sector, it has been decided to support small businesses as the reduced rate of excise duty on non-road diesel fuel rises. Building and civil engineering companies with 15 or fewer employees will be eligible for support corresponding to 5.99 centimes per liter of RNG for their 2024 consumption, up to a maximum amount of 20,000 euros. This assistance will be paid at the beginning of 2025.

Bercy intends to take advantage of this announcement to launch a wider consultation on the subject, with the aim of working with industry players to come up with " measures that can be activated over the coming years to accompany the gradual phasing-out of the excise tax on non-agricultural RNG ".

A number of non-financial measures are being studied, including :

  • aid to equip professionals with electrical equipment,
  • tighter controls on the use of reduced fares,
  • promoting biofuels.

 

An acceleration in government payment times

The simplification bill (Pacte II) currently being drafted will include various measures to reduce government payment times, which should improve the cash flow of companies in the sector.

Among the possibilities to be examined are :

  • limitation of deferred payment or cancellation at the first challenge by the principal;
  • standardizing and reinforcing the level of default interest rates applied to bad payers;
  • Increased transparency of public payers' payment terms;
  • automatic application of interest on arrears rather than at the request of companies.

National Construction and Renovation Council to be held soon

Finally, the Ministry of the Economy has announced a new meeting for the industry. A Conseil national de la construction et de la rénovation (National Construction and Renovation Council) is to be held " in the coming weeks " to address " all these issues and others specific to the building and public works sector ".

The Fédération Nationale des Travaux Publics (FNTP) reacted to these announcements. It says it has taken note of the "strong" measures to improve payment times, but remains very vigilant as to the conditions of application.

With regard to the creation of a new GNR threshold, it anticipates new difficulties. In the FNTP's view, this amounts to " creating a niche within a niche, contrary to the government's desire for simplification ".