Payment deadlines RTA: still necessary law, says Sylvain Gaudreault

sylvain-gaudreaultThe PQ MNA for Jonquiere, Sylvain Gaudreault, is satisfied with Rio Tinto Aluminium (RTA) has amended its decision to extend payment terms to suppliers. However, he believes that the adoption of a law is necessary to prevent that in the future, small suppliers and financial resources become large multinational companies.

Following the announcement by RTA, Mr. Gaudreault believes learn from the experience of some countries that have decided to frame the applicable payments between companies.

He cites France has adopted in its commercial code, provisions for a period of payment of sums due attached to the thirtieth day following the date of receipt or performance of the service.

The deadline agreed between the parties may not exceed sixty days, or in derogation forty-five days. The contractual parties may agree to modify this period.

He added the United States, nearly two-thirds of the states have implemented regulations for payments between companies varying from one State to another.

“The United Kingdom adopted the Prompt Payment Code with tangible results as reducing the time, up to nine days in the case of large companies versus their subcontractors,” Mr. Gaudreault.

Even Ontario is considering a private bill, the Prompt Payment Act, a parliamentary committee.

From these experiences, Mr. Gaudreault is committed to working to draft a bill he intends to present to his colleagues in the National Assembly in the near future.

The Stopru