Transport industry leaders are welcoming a government crackdown on “corporate bullies”.
Road Transport Forum chief executive Ken Shirley says changes are needed around the issue of late payment terms.
The issue is being raised in light of Fonterra’s policy to pay suppliers 61 days after receipt of invoices.
Small business minister Stuart Nash says he will be watching Fonterra’s payment policies closely.
The Australian government is also planning to put rules in place for departments and businesses to have less than three weeks to make payments.
Shirley says it is “very encouraging” to see “a number of positive steps towards dealing with the late payments terms issue”.
“On both sides of the Tasman there is a trend for large companies to extend payment times out to two and three months. In other words, these big companies are effectively using their suppliers and contractors as a cheap form of finance.
“This practice undertaken by Fonterra and other large companies is blatant corporate bullying.
“Small businesses in the transport sector and other industries are not cashed up and it is therefore critical that they are payed for their services within a reasonable timeframe,” Shirley says.
The RTF is working with legal experts to address “unfair contract term provisions” in an effort to help small businesses.
The industry also looks forward to working with the business minister on the issue, Shirley says.
