Trailer Magazine

ATA recommends payment code

  • Posted on Tuesday 28th, November 2017.

Australian Trucking Association (ATA) Chair, Geoff Crouch, has said that the trucking industry’s big business customers should sign up to the Australian Supplier Payment Code.

The Australian Government has reportedly endorsed the voluntary code in its response to the Small Business Ombudsman’s inquiry into payment times.

“Extended payment times are a major problem for small trucking businesses,” said Crouch.

“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 cash flow,” he said.

Businesses that sign up to the Australian Supplier Payment Code commit to paying their small business suppliers within 30 days. The signatories include ATA member Australia Post as well as BHP, Mars Australia and South32.

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

“We will watch the number of companies that sign up to the voluntary code,” said Crouch. “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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