30 day payment terms a win for Mackay businesses

30 day payment terms a win for Mackay businesses

NOVEMBER 26, 2018: THE pressure brought to bear on mining companies has resulted in a decisive win, with BHP announcing today that they will institute payment terms of 30 days for all Mackay businesses.

This result has come about on the back of a lot of work I’ve done in conjunction with local business groups like Resource Industry Network.

I pushed for a parliamentary inquiry into these payment practices and got it, and launched a major online petition called Make It 30 Days.

Payment terms were being pushed out to as much as 120 days and no supplier should be forced into doing business this way.

BHP has now heard the concerns of businesses, who were often unable to fight back for fear of recrimination, through the payment terms inquiry and representations made at public hearings conducted in Mackay, as well as other cities.

I commend the work of Resource Industry Network who advocated strongly for their members during the course of the inquiry as well.

BHP’s actions follow last week’s announcement by Peabody who committed to 30 day payment terms for all small to medium businesses supplying the company.

The pressure which has been applied to mining companies to change their payment practices has achieved its aim and I am sure any other companies who have lengthy payment terms will be forced to follow suit.

The Government’s House Standing Committee on Industry, Innovation Science and Resources conducted the Inquiry into how the mining sector can support businesses in regional economies. It is in the final stages of completing a report following a series of public and private hearings across the country.

 

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