❓ A parliamentary question regarding concerns that BGC Pty Ltd is imposing extended payment terms on subcontractors for Main Roads projects in regional WA, potentially causing financial hardship. The Minister acknowledges the issue and promises investigation.
AnsweredQoN 189Legislative Assembly
QuestionView source ↗
I refer to the $240m 10-year Main Roads term maintenance contracts to be given to BGC Pty Ltd in the Kimberley, Gascoyne, Pilbara and the mid-west. (1) Is the minister aware that at meetings convened by Main Roads in the Kimberley, BGC Pty Ltd advised local subcontractors that payments would be made only on 45-day terms and that that was not negotiable even though Main Roads has traditionally paid fortnightly? (2) Does the minister understand the financial hardship that this will impose on many subcontractors who have substantial wages and GST bills to cover? (3) Is the minister also aware that BGC Pty Ltd has often kept Kimberley subcontractors waiting 90 days for payment for other Main Roads work? (4) What action does the minister intend to take to address this problem for regional subcontractors? The DEPUTY SPEAKER: It is up to the minister whether he answers the questions. Mr COWAN
AnswerView source ↗
I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
(1) Is the minister aware that at meetings convened by Main Roads in the Kimberley, BGC Pty Ltd advised local subcontractors that payments would be made only on 45-day terms and that that was not negotiable even though Main Roads has traditionally paid fortnightly? (2) Does the minister understand the financial hardship that this will impose on many subcontractors who have substantial wages and GST bills to cover? (3) Is the minister also aware that BGC Pty Ltd has often kept Kimberley subcontractors waiting 90 days for payment for other Main Roads work? (4) What action does the minister intend to take to address this problem for regional subcontractors? The DEPUTY SPEAKER: It is up to the minister whether he answers the questions. Mr COWAN replied: I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
(2) Does the minister understand the financial hardship that this will impose on many subcontractors who have substantial wages and GST bills to cover? (3) Is the minister also aware that BGC Pty Ltd has often kept Kimberley subcontractors waiting 90 days for payment for other Main Roads work? (4) What action does the minister intend to take to address this problem for regional subcontractors? The DEPUTY SPEAKER: It is up to the minister whether he answers the questions. Mr COWAN replied: I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
(3) Is the minister also aware that BGC Pty Ltd has often kept Kimberley subcontractors waiting 90 days for payment for other Main Roads work? (4) What action does the minister intend to take to address this problem for regional subcontractors? The DEPUTY SPEAKER: It is up to the minister whether he answers the questions. Mr COWAN replied: I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
(4) What action does the minister intend to take to address this problem for regional subcontractors? The DEPUTY SPEAKER: It is up to the minister whether he answers the questions. Mr COWAN replied: I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
The DEPUTY SPEAKER: It is up to the minister whether he answers the questions. Mr COWAN replied: I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
Mr COWAN replied: I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
(1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
(1) Is the minister aware that at meetings convened by Main Roads in the Kimberley, BGC Pty Ltd advised local subcontractors that payments would be made only on 45-day terms and that that was not negotiable even though Main Roads has traditionally paid fortnightly? (2) Does the minister understand the financial hardship that this will impose on many subcontractors who have substantial wages and GST bills to cover? (3) Is the minister also aware that BGC Pty Ltd has often kept Kimberley subcontractors waiting 90 days for payment for other Main Roads work? (4) What action does the minister intend to take to address this problem for regional subcontractors? The DEPUTY SPEAKER: It is up to the minister whether he answers the questions. Mr COWAN replied: I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
(2) Does the minister understand the financial hardship that this will impose on many subcontractors who have substantial wages and GST bills to cover? (3) Is the minister also aware that BGC Pty Ltd has often kept Kimberley subcontractors waiting 90 days for payment for other Main Roads work? (4) What action does the minister intend to take to address this problem for regional subcontractors? The DEPUTY SPEAKER: It is up to the minister whether he answers the questions. Mr COWAN replied: I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
(3) Is the minister also aware that BGC Pty Ltd has often kept Kimberley subcontractors waiting 90 days for payment for other Main Roads work? (4) What action does the minister intend to take to address this problem for regional subcontractors? The DEPUTY SPEAKER: It is up to the minister whether he answers the questions. Mr COWAN replied: I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
(4) What action does the minister intend to take to address this problem for regional subcontractors? The DEPUTY SPEAKER: It is up to the minister whether he answers the questions. Mr COWAN replied: I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
The DEPUTY SPEAKER: It is up to the minister whether he answers the questions. Mr COWAN replied: I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
Mr COWAN replied: I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
I would prefer to answer the questions because it is a genuine issue should the allegations made by the member for Armadale prove to be accurate; however, it has been known in the past that that is not always the case. (1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
(1)-(4) The issue deserves to be investigated. I will investigate the case, not only on the basis as the minister representing the Minister for Transport in this House, but also as the Minister for Small Business and Regional Development. The Government would not take kindly to someone advising small business, particularly subcontractors, that they would have to wait up to 90 days for the payment of accounts. The allegation will be investigated. I will convey that concern to the Minister for Transport. If it is validated, I am sure the Minister for Transport will take the appropriate action to receive an undertaking from the term network contractor that it will meet its payments within the prescribed period that is written into the contract.
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