NZRise is often calling the government out for not levelling the playing field, poor policy or investment decisions. Today we would like to offer a few bouquets and say thank you for early supportive interventions adopted during lockdown levels in response to COVID-19.
The Government is an important element of our ecosystem, to taking these interventions early and really did assist. We thank all of those involved in these policies and acknowledge how quickly they became operational.
Prompt payment through lockdown levels
Our members report that Government agencies across the board have adopted the prompt payment mandate and are for the most part paying within 7-14 days of invoice delivered to the agency.
Prompt payment has significantly improved cash flow for the majority of our members and we appreciate the behaviour has continued into June and hope, given our post COVID recovery could take many months, it will continue once civil servants return to their offices.
One brickbat is that there is still room for improvement. Some Government controlled entities have not changed their processes at all, continuing to pay on the 20th per contract terms, others are still lagging behind that further with undisputed invoices languishing while Project Managers and PMO’s work remotely struggling to navigate internal, physical processing, designed payment systems. The majority however have implemented this change, for this we are grateful.
This has been a key support element for many businesses. Making this a barrier free subsidy whereby 1-person entities, small, medium through to the largest companies in Aotearoa could apply was a brilliant decision.
The wage subsidy gave many of our members the headroom to continue operating during levels 4 and 3 where movement was restricted, projects were placed on hold or cancelled and the usual flow of activity ceased.
Many of our members operate in multiple countries and have complimented the New Zealand wage subsidy as easiest to access and fastest to be paid.
We wish to thank the Ministry of Social Development for their supportive engagement with regards to the Wage Subsidy also.
An agency we all interact with who has undertaken significant change in parallel with COVID-19 lockdown – we have been impressed with the communications from IR, major and minor impacts for business have been explained in plain English prior to changes made, once changes made and post change.
We also wish to thank the government for penalty and interest relief on collection of taxes by the Inland Revenue.
Victoria MacLennan, Co-Chair
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