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Wall says ‘Cash on Delivery’ won’t hold up

By 7 August 2013 4

Andrew Wall is looking to get the Government to stop asking for “cash on delivery” from small Canberra businesses, and claims that the Government is making life more difficult for these businesses.

Mr Wall said today a number of small businesses have raised concerns that the government is no longer approving monthly accounts for use at its Resource Management Centre’s.

“Small businesses are required to take financial risk when providing services to government, sometimes waiting months for payment. Yet local businesses must pay cash up front, simply because the government cannot manage its own accounts,” Mr Wall said.

“In a letter responding to a request for further information regarding a credit application, Shane Rattenbury advised that new applications for accounts will no longer be available to small business operators.

“The government continues to claim that it is improving the way it works with small business. However, this is yet another example of how the current government continues to add complexity and cost to the way it interacts with local businesses.

“If the ACT Government is serious about reducing red tape and improving the way they deal with businesses, particularly small businesses, they will agree to the motion today and reinstate a 30 day account service at their waste management facilities,” Mr Wall concluded.

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4 Responses to Wall says ‘Cash on Delivery’ won’t hold up
#1
ShaneR12:53 pm, 07 Aug 13

This issue has arisen because of a large number of unpaid and outstanding accounts (at the end of the 2012 financial year, unpaid and overdue debts had risen to over $4.5 million).

Existing accounts have not been cancelled and over 500 customers continue to be allowed access to credit accounts for use of ACT NOWaste facilities. However, 44% of the 420 active accounts are currently in arrears with over $2 million overdue. As a result of this, ACT NOWaste has suspended the establishment of NEW credit accounts to assess the significant risk and liability exposure of the ACT Government, and is assessing the activity level required to make it cost effective to maintain accounts. This review will be completed by the end of September 2013, with a customer consultation process to follow in October.

Furthermore, all weighbridges accept EFTPOS and credit cards (as well as cash) so there are other options for payment.

#2
peitab1:29 pm, 07 Aug 13

ShaneR said :

This issue has arisen because of a large number of unpaid and outstanding accounts (at the end of the 2012 financial year, unpaid and overdue debts had risen to over $4.5 million).

Existing accounts have not been cancelled and over 500 customers continue to be allowed access to credit accounts for use of ACT NOWaste facilities. However, 44% of the 420 active accounts are currently in arrears with over $2 million overdue. As a result of this, ACT NOWaste has suspended the establishment of NEW credit accounts to assess the significant risk and liability exposure of the ACT Government, and is assessing the activity level required to make it cost effective to maintain accounts. This review will be completed by the end of September 2013, with a customer consultation process to follow in October.

Furthermore, all weighbridges accept EFTPOS and credit cards (as well as cash) so there are other options for payment.

This explanation sounds very reasonable. It appears Andrew Wall might be trying to make a mountain out of a molehill. Also, Wall’s reasoning smacks of ‘two wrongs make a right’.

#3
dungfungus9:40 pm, 07 Aug 13

peitab said :

ShaneR said :

This issue has arisen because of a large number of unpaid and outstanding accounts (at the end of the 2012 financial year, unpaid and overdue debts had risen to over $4.5 million).

Existing accounts have not been cancelled and over 500 customers continue to be allowed access to credit accounts for use of ACT NOWaste facilities. However, 44% of the 420 active accounts are currently in arrears with over $2 million overdue. As a result of this, ACT NOWaste has suspended the establishment of NEW credit accounts to assess the significant risk and liability exposure of the ACT Government, and is assessing the activity level required to make it cost effective to maintain accounts. This review will be completed by the end of September 2013, with a customer consultation process to follow in October.

Furthermore, all weighbridges accept EFTPOS and credit cards (as well as cash) so there are other options for payment.

This explanation sounds very reasonable. It appears Andrew Wall might be trying to make a mountain out of a molehill. Also, Wall’s reasoning smacks of ‘two wrongs make a right’.

It would appear from the high arrears ratio that credit has been granted without any application process and credit checking. If this is the case we could say “that’s the government’s problem” but some of us realize that at the end of the day it is the ratepayers that pick up the tab.
To cancel opening of all NEW accounts discriminates against potential good paying customers as well as denying credit to the bad risks. “The old blunder-bus trick” as maxwell Smart would say.
There are also Canberra owned and operated debt collectors who could assist but I’ll bet the ACT Government will outsource this function to some company in Sydney or Melbourne (or even Russia if the deal looks good enough).
It appears that generally, the government needs to review its credit granting policies. Again, there are Canberra companies who can assist in this function (they already know who the serial defaulters are).
If you are monitoring this site Mr Rattenbury you may care to address the issues I raise.

#4
Sandman8:24 am, 08 Aug 13

Given the “no waste” policy it’s understandable that you would try to make it as difficult as possible for small business to discourage them in throwing stuff out. If you put a bit of effort in its not hard for a business. Cardboard can be taken to the various free drop off centers and if you sort your metal out its also free to drop off at the waste centers. It’s just a matter of getting employees to put in a bit of effort in sorting out materials as they use them.

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