Page 1023 - Week 04 - Wednesday, 20 April 1994
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Where the account is unpaid at the due date, interest shall begin to accrue at the same rate as that used by the Supreme Court under section 70 of the Supreme Court Act 1933. That rate as of today is 12 per cent for amounts due. The interest is payable only from the same budget program as the expenditure is payable from in order to pay the account. That will ensure, of course, Madam Speaker, that program managers will be required to budget for interest payments out of their own budget allocations if they pay their accounts late. The Bill also enforces the common-law precedent that a payment mailed is deemed to be paid at the time that the cheque was posted.
Clause 10 of the Bill simply reinforces the desire on the part of government that the best price possible be achieved and that reasonable attempts be made to secure discounts for paying accounts promptly. Nothing in this clause requires discounts to be given or prevents government from entering into arrangements where discounts are not given. This provision puts the onus on government procurement officers to set about securing the best available deal for the ACT Government based on the Government paying its accounts promptly.
Madam Speaker, this Bill, as I say, is one which I hope will not have to be used very frequently; but it does give business protection that it needs from late payment of government accounts. As representatives of a community where business derives a considerable portion of its turnover from government, we should be doing what we can to ensure that payments are made promptly. We should also appeal to the Federal Government to ensure that it acts along similar lines in the interests of our local businesses.
Madam Speaker, since I first floated this proposal several Canberra businesses have contacted me to pass on details of experiences they have had with late payments by the ACT Government. They have done so, of course, in confidence because their continuing contractual arrangements with the ACT Government need to be protected, but it is clear that we need to make sure that the Government pays its bills on time. I believe that governments which adhere to good business practices need have nothing to fear from these proposals. I commend the Bill to the Assembly.
Debate (on motion by Ms Follett) adjourned.
DISCHARGE OF ORDER OF THE DAY
MR CORNWELL (10.47): Madam Speaker, in accordance with standing order 152, I move:
That order of the day No. 1, private members business, relating to appointments to university councils, be discharged from the notice paper.
I am sure that that will be to the joy of the Chief Minister.
Question resolved in the affirmative.
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