CASH DISCOUNTS

New Zealand Herald, Volume LXXVII, Issue 23606, 15 March 1940, Page 5

CASH DISCOUNTS

GOVERNMENT CLAIMS PAYMENT OF ACCOUNTS. COMPLAINT OF LONG DELAYS "The Government should adopt a uniform system for buying and selling." said Mr. Harvey Turner, when delays in the payment of accounts by Government departments -were being discussed at yesterday's meeting of the council of the Auckland Chamber of Commerce. A letter was received stating that many departments' had deducted cash discounts from accounts which had been outstanding for three, four and even six months.

When the Government was selling, said Mr. Turner, it insisted upon payment on account before deliver* was made. In the case of wheat, the Government required a deposit before the order was supplied. He suggested that the same system should be adopted all round, for goods bought by the Government as well as for those it sold. When the various Government departments called for tenders, the letter stated, goods were usually quoted either on a net basis, plus sales tax where applicable, or at a price subject to cash discount. According to normal business customs, discount was for payment within ordinary monthly credit terms, and, with Government departments, no exception could betaken if payment were made ■ approximately within the normal discount terms, although it was the practice with the departments to pay their accounts on haphazard dates irrespective of firms' discount dates. A schedule showing the dates, departments and values of goods supplied was attached to the letter. Of nine items, valued at over £IOOO, some dated back to last September and others to November. Mr. J. A. C. Allum moved that tho matter should be referred back to the executive for further information, and also that it should be brought to the notice of the Associated Chambers of Commerce, in order to find whether the practice was common in the south. On investigation, the delay might prove to liave a reasonable explanation. The motion was carried.