Minister for Employment and Small Business, the Hon. Shannon Fentiman, has again written to mining companies this week, calling on them to provide fair payment terms to 438,000 small businesses in Queensland.
Minister Fentiman said that all businesses – big or small – have an obligation to support local communities where they and their employees work.
“That’s why we need to hold large mining companies to account on fair payment terms for their small business suppliers,” she said.
Last year, Ms Fentiman wrote to companies in the industry urging them to do the right thing and treat the hundreds of small business owners fairly by ending the practice of stretching out payment terms to 90 days and beyond.
Following this, mining companies such as Peabody, NHP and Stanwell have demonstrated their commitment to fair payment terms of 30 days or less.
The Minister commended these companies and encouraged others to get on board and ‘do the right thing.’
Member for Mackay, Julieanne Gilbert, also congratulated the mining companies who have stepped forward and publicly committed to fair payment terms to local small businesses in Mackay.
“It’s great to see these large mining companies have joined our campaign to ensure the industry is supporting small businesses and local communities,” Mrs Gilbert said.
“But many more have not, and I am urging them to make a commitment to provide fair payment terms for small businesses.”
According to estimates by Queensland’s Resource Industry Network, reverting to 30-day payment terms could add 380 jobs to Mackay and Fitzroy regions alone.
Mrs Gilbert further said that the impact of extended payment terms slows down the flow of cash in regional economies like Mackay, including limiting the capacity of all business (especially small businesses) to expand and employ new staff.
“All businesses have a responsibility to support the local communities where they and their employees work.”