Government lets big business dodge payment obligations.
The New Zealand government has faced criticism for its handling of small businesses in difficult economic times. According to data from Xero, there has been an 81 percent increase in the cost of late payments to Kiwi small businesses, resulting in a significant financial burden of over $827 million per year.
Labour's spokesperson Helen White condemned the government's decision to repeal the Business Payment Practices Act, which required large businesses to report their payment practices. This move allows big multinational companies to take as long as they want to pay without any consequences. White argued that this is unfair and hinders small businesses' ability to pay their own bills and wages.
The impact of late payments on small businesses is substantial, with liquidations reaching an all-time high in 2024. Labour has called for urgent action from the government to support small businesses and stimulate economic growth.