Busi­ness pay lag not small

Joondalup Times - - NEWS - Justin Bian­chini TELL US WHAT YOU THINK www.face­book.com/Wan­nerooJoon­dalupTimes

THE head of the Small Busi­ness Devel­op­ment Cor­po­ra­tion has lashed out at the time it takes cor­po­rate Aus­tralia to pay small busi­nesses.

WA Small Busi­ness Com­mis­sioner David Ea­ton said late pay­ment hin­dered cash flow and jobs in his speech as the guest of the an­nual City of Stir­ling may­oral small busi­ness break­fast on Wed­nes­day.

He said the SBDC had been in­volved in a govern­ment in­quiry into pay­ment times and prac­tices.

“The find­ings I found quite stun­ning,” he said.

“Would you be­lieve that in Ja­pan on av­er­age cor­po­ra­tions pay small busi­ness providers and sup­pli­ers five days early?

“So there’s some­thing in their cul­ture that says that’s just the right thing to do. In the UK they pay six days late and in the US seven days late.

“And you would think that our le­gal and fi­nan­cial sys­tem com­ing from the UK and much of our cor­po­rate be­hav­iour fol­low­ing the US, we’d be sim­i­lar. No.

“Aus­tralia is the poor­est in its pay­ment prac­tises… on av­er­age 26 days late.

“That means that for ev­ery cor­po­ra­tion pay­ing their bills on time, some­body was pay­ing them 52 days late. And I think that’s con­ser­va­tive.”

Mr Ea­ton said the SBDC had used the find­ings to shame some large brands in Aus­tralia “to sim­ply pay their bills on time”.

“I find this ac­tu­ally ex­tra­or­di­nary be­cause I was born in this coun­try and I be­lieved we were fair,” he said.

He said the Busi­ness Coun­cil of Aus­tralia had in­tro­duced a reg­is­ter to en­cour­age busi­nesses to pay on time.

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