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Resource Industry Network welcomes BHP announcement to implement 30-day payment terms for its supply

26-Nov-2018

Resource Industry Network (RIN) has welcomed today’s announcement that BHP and its largest coal business BMA, will be implementing 30-day payment terms for its regional supply chain starting December 1st.

RIN general manager Adrienne Rourke says the announcement is good news for regionally-based businesses in the resources supply chain and will help in reducing the use of debt to fund operating costs, making businesses more resilient and responsive to market changes.

The announcement means a further 256 Mackay businesses will now be on 30-day payment terms, a sizeable increase from the current 89 existing local vendors.

“By making this change to its procurement policies, BHP has demonstrated that it values the communities in which they have a footprint and wants those local suppliers to grow stronger businesses,” Ms Rourke said.

“Resource Industry Network would like to acknowledge BHP for listening and responding to its supply chain.

“Businesses will be better able to fund intangible inputs such as research and development, and training. These drive the innovation that our sector is famous for,” she added.

“Resource Industry Network has led the discussion on this topic and we are proud of the work our team has done on raising awareness of the impacts of extended payment terms on regional economies.

“We pursued the issue because the overwhelming majority of our membership wanted us to lead the way and highlight the impacts of extended payment terms on individual businesses, as well as local economies.

“The decision by BHP today is good news for the resources supply chain, and for regional Australia,” she said.

A research report, commissioned by RIN and prepared by Lytton Advisory, has shown that 30-day payment terms increase the opportunities for local jobs, investment in innovation, and money spent in regional communities.

As a peak industry body for the METS sector, RIN has been highlighting the benefits that 30-day or less payment terms have on the supply chain and regional economies, as part of our role in representing the interests of our members and the sector.

*ENDS*

Supporting Information - Download the report at: http://www.resourceindustrynetwork.org.au/announcements/report-shows-big-opportunity-being-missed-in-regional-economy-when-adopting-extended-payment-terms

For further information, please contact:

RIN Communications Officer

Jodie Thompson

P: 07 4952 4184

M: 0408 638 968

Email: comms@resourceindustrynetwork.org.au