5 years ago
GOVERNMENT’S TALKING POINTS EXPOSE THEIR HYPOCRISY REGARDING SMALL BUSINESS
BRENDAN O’CONNOR MP
In an embarrassing mistake this morning, the government’s talking points were sent to the media and they expose this government trying to spin the message that they have the interests of small business at heart, when their actions show the complete opposite.
The talking points state that this government has a plan to, “Reduce the costs of doing business – energy, deregulation, finance, getting paid on time.”
These are hollow words, particularly their claim that small businesses are “getting paid on time”.
Labor has long maintained concerns about large businesses extending payment times to small business suppliers – sometimes as long as 90 days after invoicing.
Report after report, including another one today, raise concerns about the increasing prevalence of ‘reverse factoring’ – a payment process that is harming small businesses.
What is the Morrison Government’s stance on this issue? Who’s side are they on? Are they on the side of small businesses or are they happy for small businesses to be penalised simply for wanting to be paid on time?
Last year the Prime Minister promised to create a register of the payment times of Australia’s 3,000 largest companies. Almost a year later there are still no details.
If the Government does eventually come around to announcing the payment times register, they must ensure it does not let big businesses misrepresent their payment times by using reverse factoring arrangements.
The Government has no excuse for not listening to small business cash flow problems. The Australian Small Business and Family Enterprise Ombudsman Kate Carnell said in the Payment Term review in March:
“[Third-party financing] must not replace reasonable payment terms being offered, 30 days or less from invoice, and paying to those terms. It is not acceptable for large business to use small suppliers to optimise their cash flow.”
The Government has been missing in action when it comes to putting small businesses first, leaving it to Labor to fix the problems surfacing under their leadership.
Small businesses require prompt payments to help manage cash flow and to grow, particularly when access to finance is tight.
It is increasingly clear that the Liberals take small business for granted, setting the conditions that allow big businesses to treat small businesses like piggy banks.
The talking points state that this government has a plan to, “Reduce the costs of doing business – energy, deregulation, finance, getting paid on time.”
These are hollow words, particularly their claim that small businesses are “getting paid on time”.
Labor has long maintained concerns about large businesses extending payment times to small business suppliers – sometimes as long as 90 days after invoicing.
Report after report, including another one today, raise concerns about the increasing prevalence of ‘reverse factoring’ – a payment process that is harming small businesses.
What is the Morrison Government’s stance on this issue? Who’s side are they on? Are they on the side of small businesses or are they happy for small businesses to be penalised simply for wanting to be paid on time?
Last year the Prime Minister promised to create a register of the payment times of Australia’s 3,000 largest companies. Almost a year later there are still no details.
If the Government does eventually come around to announcing the payment times register, they must ensure it does not let big businesses misrepresent their payment times by using reverse factoring arrangements.
The Government has no excuse for not listening to small business cash flow problems. The Australian Small Business and Family Enterprise Ombudsman Kate Carnell said in the Payment Term review in March:
“[Third-party financing] must not replace reasonable payment terms being offered, 30 days or less from invoice, and paying to those terms. It is not acceptable for large business to use small suppliers to optimise their cash flow.”
The Government has been missing in action when it comes to putting small businesses first, leaving it to Labor to fix the problems surfacing under their leadership.
Small businesses require prompt payments to help manage cash flow and to grow, particularly when access to finance is tight.
It is increasingly clear that the Liberals take small business for granted, setting the conditions that allow big businesses to treat small businesses like piggy banks.