Page 5053 - Week 12 - Wednesday, 26 October 2011
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In the context of payments to suppliers, the government locally processes nearly 300,000 accounts payable invoices annually through the Shared Services Centre. Our analysis shows that almost 50 per cent of the invoices processed for payment are valued at $500 or less. Payments for these invoices are generated either via electronic payment or cheque, with around 80 per cent of payments made via electronic funds transfer. Ensuring that our processing times are short and that payments are accurate are the top priorities for the Shared Services Centre.
One of the features of our supplier network is its diversity. The government deals with large, medium and small businesses, companies, partnerships and sole traders, commercial firms, not-for-profits and charitable organisations. Our approach to paying suppliers is flexible and we try to comply with payment terms, which vary from immediate through the spectrum to seven days, 14 days and up to the more standard 30-day payment terms.
Generally, invoices are paid in accordance with payment terms. Our most recent quarterly statistics on this matter bear out this fact. These statistics indicate that, on average, around 85 per cent of invoices processed by Shared Services are paid within a 30-day time frame. This is backed by previous data based on 2009 averages, which showed that in that year 83 per cent of invoices were paid within the 30-day period.
That means in the context of the motion we have before us that for 85 per cent of suppliers, the grand policy proposed by the Leader of the Opposition actually makes them worse off, which is an extraordinary misfire for the centrepiece of a major policy announcement to in fact extend the time frame. Is that the best the Leader of the Opposition can do—
Opposition members interjecting—
MR ASSISTANT SPEAKER: Order, members! So far it has been fine. Let us keep it that way.
MR BARR: extend the time frame from 30 days to 45 and claim that as some great victory? Some poor researcher in the Leader of the Opposition’s office got that one badly wrong, didn’t they? But, Mr Assistant Speaker, let us be clear about—
Mrs Dunne interjecting—
MR ASSISTANT SPEAKER: Mrs Dunne, that will do, thanks.
MR BARR: They are very sensitive on this issue, Mr Assistant Speaker, it would appear.
MR ASSISTANT SPEAKER: That is four out of five.
MR BARR: You always know when you have hit a raw nerve on that side. All of a sudden the interjections start coming at you. Mr Smyth starts bleating away furiously, leaning back in the seat and giving his little commentary—
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