Source: New Zealand Labour Party
The Government is leaving small businesses high and dry in difficult economic times, by letting big business get away with not paying their bills.
Data from Xero shows there has been an 81 percent increase in the cost of late payments to Kiwi small businesses, now costing firms more than $827 million a year.
“That’s a huge jump from $456 million in 2021, and shows this Government is failing our small businesses. This is effectively theft and bullying by big businesses,” Labour’s small business and manufacturing spokesperson Helen White said.
“Andrew Bayly repealed Labour’s Business Payment Practices Act, which required large businesses to report how long they took to pay invoices.
“The Minister is simply out of touch if he thinks by telling Government departments to pay their bills on time that this large problem will go away.
“Removing the requirement to report now means big multinational companies can do what they want and take as long as they want to pay without any consequences.
“It’s unfair. Big businesses are forcing the little guy to carry their debt, hindering their ability to pay their own bills and wages.
“Small business represents almost 30 percent of employment and contributes more than a quarter of New Zealand’s gross domestic product. It is critical the Government supports them to thrive and grow New Zealand’s economy.
“Liquidations are at an all-time high. With the first eight months of 2024 seeing liquidations 40 percent higher than last year, the Minister should be taking urgent action to support small businesses,” Helen White said.
Stay in the loop by signing up to our mailing list and following us on Facebook, Instagram, and X.
