Govt Urges Timely Invoice Payments by Central Agencies to Support Small Businesses

"Cash flow is critical for small businesses. A late or unpaid invoice can significantly impact a business’s ability to pay its staff on time," said Minister Bayly.

The Government has issued a directive to central government agencies to prioritize timely payment of invoices, Small Business and Manufacturing Minister Andrew Bayly announced today.

In a move to promote transparency and accountability, data on payment times for each central government agency has been released. This data will now be published quarterly, serving as a benchmark to track progress on prompt payment practices.

"Cash flow is critical for small businesses. A late or unpaid invoice can significantly impact a business’s ability to pay its staff on time," said Minister Bayly. "With 97 percent of New Zealand’s businesses being small enterprises, prompt payment is essential for the broader success of the economy."

Bayly highlighted that central government agencies, which process 1.3 million invoices annually, play a major role as clients of small businesses. "Given their purchasing power, these agencies have a responsibility to pay their invoices on time."

The data released today shows that most agencies are meeting the target of paying 95 percent of their domestic invoices within 10 working days, but Bayly noted that there is room for improvement. He urged agencies that are not yet meeting this target to consider the impact of slow payments on business owners and take immediate steps to improve.

This data release is part of a broader initiative to enhance payment times and foster better business interactions with the government. "We must hold ourselves to the highest standards and drive better outcomes for businesses and taxpayers," Bayly emphasized. "Prompt payments are a key part of our plan to deliver more efficient, effective, and responsive public services."