State Government Ministers will require Government Trading Enterprises (GTEs) within their portfolios to align with the State Government's policy that ensures suppliers of government goods and services are paid within 30 days.
This follows reports last week that some GTEs, including the Water Corporation, had different policies when it comes to paying suppliers and that in some cases contractors were being offered early payments, in exchange for discounts on their invoices.
The State Government requires all commercial payments to be paid within 30 days of the receipt of the creditor's claim, or within 30 days of provision of the goods or services (whichever is later), except where the terms or conditions of a contract relating to a claim for payment provide for alternate payment arrangements or where a discount is offered by a supplier for early payment.
Treasurer Ben Wyatt wrote to Ministers this week, requesting them to ensure GTEs within their portfolios align with this policy. The Department of Treasury will be liaising directly with GTEs to confirm alignment with the 30-day policy.
As stated by Treasurer Ben Wyatt:
"The State Government's view is that all government agencies and Government Trading Enterprises must abide by the 30-day Government policy for the payment of invoices.
"Governments should lead by example and if suppliers do the work, they should expect to be paid in a timely manner.
"The issues raised last week by Water Corporation suppliers were rightly deemed unacceptable by the Premier.
"As the Premier made clear last week, we don't believe this is acceptable and have moved swiftly to ensure suppliers are paid within 30 days or sooner when possible."
