A Hunter council has firmly denied any cash flow troubles, even as numerous businesses and suppliers report cutting ties with the organisation after enduring extended waits for bill settlements.
Payment Delays Affecting Local Businesses
For more than half a year, some enterprises have faced delays of up to eight weeks for the Maitland City Council (MCC) to clear their accounts. The Newcastle Herald has learned of at least four businesses that have either severed their relationship with the council or refused to continue services until outstanding invoices are resolved.
One frustrated supplier stated, 'The mayor runs around exercising his jaw about how great they are and no bastard is getting paid. We've pulled the pin completely, we're not going to work with them any more.'
The issue reportedly began in the final quarter of 2025 and has deteriorated since, with one business being owed more than $20,000. 'It's been getting worse and worse. At one stage they were eight weeks behind. You can't control your cash flow when you're waiting that long; you end up robbing Peter to pay Paul,' the supplier added. 'Something must be radically wrong. There is something bloody wrong internally when people are suffering and not getting paid. You get onto accounts department and there is no explanation other than something about a new computer system.'
Council's Response
Maitland City Council acknowledged that some suppliers have experienced payment delays and understood the impact this can have on local businesses. A council spokesperson said, 'Council does not consider extended payment timeframes acceptable and is actively working to address these issues.'
MCC rejected any notion of a cash flow issue or problems with the new enterprise resource planning system installed in September 2025. Instead, the primary cause is described as a 'resourcing impact' within the finance team at the end of 2025, including an unexpected period of staff leave. 'This reduced capacity, combined with normal invoice volumes, led to a backlog that persisted into early 2026,' the spokesperson explained.
The council has implemented interim measures to prioritise payments and is working through the backlog. 'We are also working directly with affected suppliers to resolve any outstanding matters as quickly as possible. Council's standard payment terms are 30 days from receipt of a valid invoice, in line with typical local government practice. Our expectation is that suppliers are paid within this timeframe, and we are taking steps to ensure this is consistently achieved.'
Commitment to Local Businesses
The spokesperson concluded, 'Maitland City Council values its relationships with local businesses and recognises the important role they play in supporting the delivery of services to our community. We are committed to strengthening these relationships through reliable, timely and transparent processes.'
