The Government is leaving small businesses high and dry
in difficult economic times, by letting big business get
away with not paying their bills.
Data from Xero shows
there has been an 81 percent increase in the cost of late
payments to Kiwi small businesses, now costing firms more
than $827 million a year.
“That’s a huge jump from
$456 million in 2021, and shows this Government is failing
our small businesses. This is effectively theft and bullying
by big businesses,” Labour’s small business and
manufacturing spokesperson Helen White said.
“Andrew
Bayly repealed Labour’s Business Payment Practices Act,
which required large businesses to report how long they took
to pay invoices.
“The Minister is simply out of
touch if he thinks by telling Government departments to pay
their bills on time that this large problem will go
away.
“Removing the requirement to report now means
big multinational companies can do what they want and take
as long as they want to pay without any
consequences.
“It’s unfair. Big businesses are
forcing the little guy to carry their debt, hindering their
ability to pay their own bills and wages.
“Small
business represents almost 30 percent of employment and
contributes more than a quarter of New Zealand’s gross
domestic product. It is critical the Government supports
them to thrive and grow New Zealand’s
economy.
“Liquidations are at an all-time high. With
the first eight months of 2024 seeing liquidations 40
percent higher than last year, the Minister should be taking
urgent action to support small businesses,” Helen White
said.
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