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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2013-10-29 Daily Xml
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GOVERNMENT INVOICES AND ACCOUNTS

The Hon. A. BRESSINGTON (14:52): I seek leave to make a brief explanation before asking the minister representing the Treasurer a question about the late payment of government debts.

Leave granted.

The Hon. A. BRESSINGTON: We all know that we will be reviewing legislation here on the matter of the government's late payment of debts. Cabinet has approved a scheme that will also speed up payments from a weekly to a daily basis and will consider an online payment portal and force departments to report monthly on their payment performance.

The Advertiser revealed that the government had failed to pay $1.5 billion of its bills on time last year, forcing many businesses to delay payments to their own staff and suppliers. If the government had been forced to pay interest of 10 per cent on this figure, it would have cost about $400,000 a day.

The government paid $410 million late in 2006-07 and more than $750 million late last financial year, inflated to $1.5 billion when all government agencies are included. This was despite a government policy of a 30-day turnaround on invoices. Public sector minister Michael O'Brien has already introduced changes that include taking action on invoices left untouched for six days. The Advertiser of 11 February states:

The state government must introduce laws it promised before the end of last year to reduce late payment of bills to small businesses, the opposition says.

We know that there is a bill before the parliament, but that bill is not just about late payments. Can the Treasurer explain why, after the public sector minister proposed to introduce changes before the end of last year as the Prompt Payment Bill for a 14-day turnaround of bill payment, we are now proposing legislation to potentially turn small businesses and other suppliers into pseudo-banks that are required to provide loans to the government at an interest rate determined by the government without the government making a loan application? Can the Treasurer also explain why this is simpler and easier than just focusing on policy and procedures to ensure the prompt payment of bills?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (14:55): I thank the honourable member for her most important questions. I will refer them to the Treasurer in another place and bring back a response.

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