THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has welcomed action taken by Greensill to cut ties with clients that have poor payment terms, calling on other supply chain finance providers to follow suit.

“Greensill has issued discontinuance notices to its supply chain finance clients who fail to comply with 30-day payment terms,” Ms Carnell said.

“This is strong action taken in response to our Supply Chain Finance Review, showing that Greensill takes prompt payment times to small business seriously.

“There is no reason why other supply chain finance providers can’t do the same.

“As outlined in our Supply Chain Finance Review, we know there are large companies extending their payment terms to 60 or more days from the end of month the invoice is lodged and offering supply chain finance to those that want to be paid earlier and are willing to take a discount on the invoiced amount," Ms Carnell said.

“This practice is unacceptable and harmful to small businesses, especially in the current difficult trading conditions.

“Now, more than ever before, small businesses need to be paid the full invoiced amount owed, on time. Their survival depends on it.

“That’s why my office has recommended federal legislation requiring small businesses to be paid in 30 days. It is the only way to drive meaningful change in business payment performance across the economy," she said.

“Greensill has shown that supply chain finance providers can lead by example by cutting off clients that fail to pay on time.

“This should be the position adopted by all supply chain finance facilitators.”

www.asbfeo.gov.au

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OPTIONS for improving how major rail projects are funded will be discussed at a videoconference public hearing on August 17, 2020 for the inquiry into options for financing faster rail.

John Alexander MP, Chair of the House of Representatives Standing Committee on Infrastructure, Transport and Cities, said, "Governments have a responsibility to ensure that tax payer dollars are being used effectively on vital rail and wider infrastructure projects.

"Mr Steve Skinner will provide the committee with interesting evidence on opportunities lost for value capture, where infrastructure projects have created significant uplifts in land values," Mr Alexander said..

The Property Council of Australia will provide a stakeholder perspective on planning and tax reform challenges and opportunities, including voluntary planning agreements and government investment in infrastructure projects through ‘asset recycling’, involving the sale or lease of existing public assets to the private sector.

The committee will also hear from independent think tank Infrastructure Partnerships Australia about alternatives for funding major infrastructure.

Public hearing details

Date: Monday 17 August 2020
Time: 9.15am to 11.45am
Location: Videoconference

A program for the hearing is available on the Committee’s website.

The hearing will be broadcast live at aph.gov.au/live.

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THE Joint Standing Committee on Migration will hold a public hearing today for its inquiry into the Working Holiday Maker program, with a particular focus on the agricultural sector.

Committee Chair Julian Leeser says the hearing will be an opportunity to hear from groups about the upcoming harvest season, and the impact of the COVID-19 pandemic on the available workforce.

"In our inquiry so far, we have heard from a diverse range of groups and government departments with a wide range of connections to the Working Holiday Maker program," Mr Leeser said.

"This hearing is an opportunity to focus on the workforce issues facing the horticulture industry from groups on the front line of this issue, including Fruit Growers Victoria and the Greater Shepparton City Council.

"The Committee will hear from AgriLabour, a labour hire company working with both Working Holiday Makers and agriculture businesses around Australia."

Public hearing details

Date: Thursday 13 August 2020
Time: 12.30pm – 4pm
Location: by teleconference

The hearing will be streamed at aph.gov.au/live.

Further details on the inquiry, including the terms of reference, are available on the inquiry website.

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THE House of Representatives Standing Committee on Economics will hold a public hearing with the Governor of the Reserve Bank of Australia (RBA), Philip Lowe, on Friday, August 14, via videoconference.

The RBA last appeared before the committee in February 2020.

At its meeting on August 4, the RBA Board decided to maintain the current policy settings, including the targets for the cash rate and the yield on three-year Government bonds of 25 basis points.

Commenting on the decision, the RBA Governor said, "This accommodative approach will be maintained as long as it is required. The Board will not increase the cash rate target until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2–3 percent target band."

The RBA Governor said, "The Australian economy is going through a very difficult period and is experiencing the biggest contraction since the 1930s. As difficult as this is, the downturn is not as severe as earlier expected and a recovery is now underway in most of Australia.

"This recovery is, however, likely to be both uneven and bumpy, with the coronavirus outbreak in Victoria having a major effect on the Victorian economy."

Committee Chair, Tim Wilson MP said,  "The committee will be scrutinising the RBA’s measures in response to the COVID-19 pandemic. We are interested in learning more about the RBA’s plans to support a strong recovery for the Australian economy.

"There’s never been a more lively time to discuss monetary policy, with reckless proposals for Modern Monetary Theory floated in the media. This hearing will provide a good opportunity for the RBA to outline the shortcomings of such proposals." Mr Wilson said.

Public hearing details

Date: Friday, 14 August 2020
Time: 9.30am to 12.30pm
Venue: Videoconference

The hearing will be broadcast live at aph.gov.au/live.

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