Small Business and Manufacturing Minister, Andrew Bayly says the Government is sending a clear message to central government agencies that they must prioritise paying invoices in a timely manner.
Mr Bayly said data released today promotes transparency by publishing the payment times of each central government agency.
The data will now be published quarterly by the Ministry of Business, Innovation and Employment and serve as a benchmark for agencies to track their progress.
“Cash flow is paramount for small businesses. An unpaid or late invoice can be the difference between being able to pay your staff on time or not,” Mr Bayly says.
“Given 97% of all businesses in New Zealand are small businesses, it is important for our wider economic success that we promote prompt payments times.
“Central government agencies are a significant client of small businesses up and down the country. Each year they collectively receive and pay 1.3 million invoices. Given their purchasing power, central government agencies have a responsibility to pay their invoices on time.
“While I am pleased to see from today’s data that most agencies are meeting the target of paying 95% of their domestic invoices within 10 working days, there is room for improvement.
“I hope the agencies which are not currently meeting this target will reflect on the implications of slow payment times for hardworking business owners and take steps to improve.”
The publication of today’s data is the first in a series of actions designed to improve payment times and make it easier and more attractive to do business with government, said the Minister.
“We need to get our house in order and hold ourselves to the highest standard. The Government is committed to driving better outcomes for businesses and the taxpayer. Paying government invoices quickly is an important part of our plan for delivering more efficient, effective and responsive public services.”
Find the Government payment times data quarterly on the MBIE website.
