Page 1021 - Week 04 - Wednesday, 20 April 1994
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Let us look at instances where government treats its customers in a fashion which imposes penalties for late payments. The first and most obvious is the requirement that rates and land tax be paid by the due date. If payments are received late, interest on the rates or land tax will apply at the rate of 20 per cent. Whilst late payments by governments are tolerated, it seems that payments made to the Government will not be tolerated. A strict regime of interest based penalties applies. I argue, Madam Speaker, that late payment by government should now attract a similar penalty. I do not, however, suggest a rate as arbitrary as 20 per cent. If the ACT Government intends to be so demanding of the ratepayers of the Territory, why should they not be so demanding of the Government?
Madam Speaker, during the Estimates Committee process last year, I attempted to find out the extent of this problem. I asked a question of the then Minister for Health, Mr Berry, concerning the number of accounts in his department - that is, Health - outstanding beyond 30 days. I did so because, from my own time as Minister for Health, I understood that ACT Health's record of payment of accounts on time had not been very good, at least in some areas. I was told that there were some 11 accounts outstanding as at 30 June 1993. I was further told that none of those accounts were subject to any dispute and that they were paid eventually on 6 July 1993. No information was given as to the position of outstanding accounts as at the date I posed the question, which of course was about September.
I note that when I first announced this legislation Mr Connolly issued a challenge to actually produce evidence of late payment of accounts by government departments before he or his colleagues would consider support for this Bill. I have produced that evidence, and I hope that Mr Connolly and his colleagues will therefore consider that this Bill carries with it great value to the Government, to consumers and to small businesses in this town and will therefore consider supporting it.
The Enfield inquiry into health finances in 1991 referred, in part, to a serious problem with late payment of accounts. It said, in part:
The carryover of about $1 million was a deliberate action because funds were not available to pay the accounts at the end of 1989/90. The carryover was certainly not due to the introduction of a new finance system.
I am sure, Madam Speaker, that, as a result of this report and action taken by the Alliance Government, this problem was substantially rectified in Health. However, I am concerned that last year in the Estimates Committee the Minister could not tell me anything about outstanding accounts at the time he was questioned. Clearly there is inadequate record keeping of accounts payable by departments and government agencies. As a result of inadequate information being maintained, the late payment of $1m worth of accounts without reason, aside from budget measures, was harshly criticised - and properly so - by the Enfield inquiry.
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