ATA seeks wider application of voluntary pay code


Crouch says ATA will monitor effects and application of payment code

ATA seeks wider application of voluntary pay code
Crouch says extended payment times are a major problem for transport operators.

 

The peak trucking body wants more big business customers to sign up to Business Council of Australia (BCA’s) voluntary payment code.

Australian Trucking Association (ATA) chair Geoff Crouch says delayed payment times are a major problem for the trucking sector, particularly small transport operators.

Crouch recommends wider application of the Australian Supplier Payment Code to address this issue.

Businesses that sign up to the voluntary code are obligated to pay their suppliers within 30 days.

"Extended payment times are a major problem for small trucking businesses," Crouch says.

"The ATA is aware of customers demanding payment times of more than 120 days.

"Some companies that demand long payment times then have the gall to offer finance to their small business suppliers to cover their missing cashflow."

Apart from ATA backing, the code has also been endorsed by the federal government in its response to the Australian Small Business and Family Enterprise Ombudsman’s inquiry into payment times.

However, ASBFEO Kate Carnell and National Road Transport Association (NatRoad) CEO Warren Clark have earlier expressed doubts whether the BCA code will be able to eradicate the problem of unreasonable payment times.

In its submission to the Small Business Ombudsman inquiry, ATA had recommended a mandatory code for the trucking industry under the Competition and Consumer Act 2010 to address this issue.

Crouch says the trucking body will monitor the effects and application of the code before planning its next steps.

"We will watch the number of companies that sign up to the voluntary code," Crouch says.

"We will press the Government for further action if the code does not deliver the results that Australia’s small trucking businesses need."

 

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