The Western Australian Government has announced it requires all Government Trading Enterprises (GTEs) within state minister portfolios to align with the it’s policy that ensures suppliers of government goods and services are to be paid within 30 days.
This follows reports 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 alternative payment arrangements or where a discount is offered by a supplier for early payment.
Treasurer, Ben Wyatt, wrote to ministers, requesting them to ensure GTEs within their portfolios align with this policy. The Department of Treasury said it will be liaising directly with GTEs to confirm alignment with the 30 day policy.
“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,” Mr Wyatt said.
“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.”