Rec­om­men­da­tions to change ex­tended pay­ment terms

LEG­IS­LA­TION REC­OM­MENDED TO CRACK DOWN ON LENGTHY PAY­MENT TERMS

Central Telegraph - - CQ INDUSTRY -

THE Fed­eral Gov­ern­ment has been urged to force min­ers to step in to force min­ers to ad­here to 30-day pay­ment terms by 2020.

The rec­om­men­da­tion was made by the In­dus­try, In­no­va­tion, Sci­ence and Re­sources Com­mit­tee, in its re­cently tabled re­port for its min­ing en­quiry, Keep it in the Re­gions: Min­ing and re­sources in­dus­try sup­port for busi­nesses in re­gional economies.

Glad­stone En­gi­neer­ing Al­liance wel­comed the find­ings, af­ter they ap­peared as wit­nesses at the in­quiry to rep­re­sent small to medium sized busi­nesses work­ing in the re­sources sec­tor.

“A re­li­able cash flow and work­ing cap­i­tal en­hances a busi­ness’s abil­ity to grow, cre­ate jobs and plan for the fu­ture,” GEA act­ing chief ex­ec­u­tive Julie Gelder said.

“The stress and un­cer­tainty of lengthy or late pay­ments can take a di­rect per­sonal toll on em­ploy­ees, own­ers and share­hold­ers. The on­go­ing vi­a­bil­ity of busi­nesses has been threat­ened by ex­tended pay­ment terms es­pe­cially if they are un­able to se­cure fi­nance for their op­er­a­tions to cover their reg­u­lar and un­avoid­able out­lays such as wages, su­per­an­nu­a­tion, and tax­a­tion pay­ments”

Chaired by Hon Barn­aby Joyce MP, the Fed­eral Gov­ern­ment re­port ad­dressed a num­ber of is­sues re­lat­ing to the in­quiry in­clud­ing min­ing com­pa­nies’ pro­cure­ment poli­cies, roy­al­ties for re­gions, skills short­ages and skills devel­op­ment, so­cial li­cence to op­er­ate, and terms of pay­ment and con­tract terms.

“The com­mit­tee’s rec­om­men­da­tion re­gard­ing pay­ment terms is for the Aus­tralian Gov­ern­ment to con­sider the out­come of the re­view into the Busi­ness Coun­cil of Aus­tralia’s vol­un­tary Aus­tralian Sup­plier Pay­ment Code (the Code) or en­force 30-day pay­ment terms as early as 2020,” Ms Gelder said.

The re­port states if the re­view does not re­sult in the sig­nif­i­cant strength­en­ing of, and com­pli­ance by in­dus­try with, the Code, the Aus­tralian Gov­ern­ment should then move to leg­is­late max­i­mum pay­ment terms. If the Code is not sig­nif­i­cantly strength­ened by July 2019, the re­port rec­om­mended the in­tro­duc­tion of leg­is­la­tion which sets a max­i­mum pay­ment time for busi­ness to busi­ness trans­ac­tions depend­ing on the size of the com­pany.

CAM­PAIGN FOR CHANGE: Glad­stone En­gi­neer­ing Al­liance act­ing chief ex­ec­u­tive Julie Gelder.

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