Scoop has an Ethical Paywall
Licence needed for work use Learn More

Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Fonterra is right to reduce payment times

17 April 2018

Fonterra is right to reduce payment times

Road Transport Forum Chief Executive Ken Shirley acknowledges the action taken by Fonterra to reduce its payment times to small and medium suppliers and contractors.

“Fonterra’s previous policy was blatantly unfair to these smaller businesses and was really just using them as a cheap form of finance,” says Shirley. “It was quite an outrageous practice and we are pleased that they have dropped it.”

“It is good to see Fonterra bucking the growing international trend for large companies to extend payment times. Over the last few years and on both sides of the Tasman there have been a number of examples of larger companies using this kind of corporate bullying to their own advantage and to the detriment of small businesses that depend on them.”

The Road Transport Forum has been working on a legislative solution to the issue of deferred payments.

“Our proposal is based around the unfair contract term provisions that already exist in the Fair Trading Act. By extending the provisions that currently exist to protect consumers in consumer-based contracts to business-to-business contracts large companies would be unable to force small businesses into unfair contract terms.”

“We look forward to working to meeting with Small Business Minister Stuart Nash in the next few weeks and working with his officials on this proposal,” says Shirley.

ends

Advertisement - scroll to continue reading

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 
 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.