TRANSCRIPT

Australian Small Business and Family Enterprise Ombudsman Bruce Billson interview with Glen Bartholomew.

ABC News Radio

6 December 2022

Subject: Payment Times for Small Business

Glen Bartholomew

One who's been campaigning on this matter for a while now, Bruce Billson, is the small business and Family Enterprise Ombudsman. He joins us now. Bruce Billson, good afternoon. What do you make of that? The sentiment was good. Do the words match the reality?

Bruce Billson

Well, Glen, good to be with you and your listeners. And I'm encouraged by what Andrew (McKellar) is saying. But as so many small businesses would say, ‘nice back, swing, show me the follow through’. It's something I know ACCI has been interested and engaged with. There's even been policy commitments made by bigger businesses through their industry organisation, the Business Council of Australia, committing to a 30-day payment window.

Now, the most recent data, which shocked me, Glen, was that only two-thirds of big businesses aspire to pay their small business suppliers within 30 days. So that's the ambition. And then only one in three actually do so. So, to quote my inner John McEnroe, you can't be serious. This needs to be taken more seriously. Finance is the oxygen of enterprise. Cash flow is vital to these small and family businesses.

The Register that was designed to reveal those that aren’t doing what is reasonable and giving a fair go to their small business suppliers seems not to have changed behaviour. So, I think this review is very timely and we might need a little bit more firmer guidance for those big businesses not doing the right thing by their small business suppliers.

Glen Bartholomew

Your recent analysis revealed only 31% of big businesses paid small business customers within 30 days, but about a quarter took an astounding 120 days to pay their bills. A review is one thing. What would you like to see come out of this? What sort of enforcement or teeth do we need here?

Bruce Billson

Well, the performance has been appalling, Glen, and that's why there is a need for stronger measures. A couple of things that should be on the on the agenda of this review. And we welcome that former minister Dr Craig Emerson is conducting that review. We'll be making a submission, of course.

But for those notorious serial offenders who just don't pay their way, there is a case for at least mandating performance with consequences for those that don't perform. The other part of it is, even with the reporting Register as it is now, Glen, the best performance category is 20 days or less. Now, that's hardly shooting the lights out.

We've seen during the pandemic that major companies recognised how challenging times were for small, family and indigenous suppliers. And some were paying within a handful of days. And with initiatives like eInvoicing, the capability to pay within days is there. We need to make sure the appetite is there and then the action follows.

Glen Bartholomew

Surely the technology's made it only easier. Let's see what the review brings. Bruce Billson we’ll stay in touch. Thanks for joining us. Bruce Billson, the Australian Small Business and Family Enterprise Ombudsman.