George Christensen (Dawson, National Party) Share this | Link to this | Hansard source

The Bowen Basin economy is making a comeback on the back of rebounding coal prices, but the resurgence is restrained because big mining companies refuse to pay their bills on time. Ignoring their supplier's 30-day terms, these companies delay payment to 60 or 90 days, sometimes contesting invoices to push it out to 120 or 150 days. Most of the businesses are forced to bankroll the cash flow of these multimillion-dollar mining companies, and most of these small businesses have a turnover of less than $5 million. They're unable to secure the same terms from their own suppliers.

The Resource Industry Network in Mackay surveyed members on the impact of these sorts of policies, and the responses from members suffering huge cash flow impacts are telling. I can't name the businesses concerned, because they all fear retribution from the big mining companies. But one said: 'We have had to drastically cut our inventory, thereby increasing lead times on orders and service levels to our clients. We've had to reduce staff numbers drastically, thereby reducing our service levels considerably.' Another said: 'When challenged on breach of contract agreements, they just say, "Well, sue us." And then there will be a long, drawn-out legal battle—unaffordable—and we'll never get a contract with them again.' So, not surprisingly, the actions of these big mining companies have been described again and again as immoral.

The Resource Industry Network took issue with the Queensland Resources Council, which, unfortunately, saw the problem as a commercial decision. I call on the big miners to do something about this before government has to act.