The Minns Labor Government will support all nine recommendations from the NSW Parliament’s inquiry into government procurement, paving the way for more transparent, fair and effective practices.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos referred the matter to the parliamentary inquiry in response to concerns about the decline in local manufacturing and a lack of local content policies under the previous Liberal-National Government.
The NSW Government welcomes all of the report’s recommendations which will see:
- An expanded definition of ‘value for money’ so that opportunities for job creation and local industry support can be factored into government spend,
- The amending or removal of obstacles to opportunities for small and medium size enterprises to bid for government contracts,
- Improved compliance and assurance with procurement policies and directions,
- New measures to ensure timely feedback is offered to all parties involved in a competitive tender bid.
Under the previous Liberal-National Government, thousands of jobs and billions of dollars of major contracts were sent abroad. What came back were delays, cost blowouts and, ultimately, inferior products.
The Minns Labor Government is committed to reforming government procurement to encourage the development of local industries and remove barriers to local growth.
The inquiry’s recommendations complement the suite of reforms already commenced by the NSW Government, including:
- Mandating that agencies engage with local NSW suppliers before tendering for contracts worth more than $7.5 million, and if the contract is awarded to a supplier outside NSW, to undergo a ‘please explain’ outlining why it wasn’t,
- Revoking rules which made it unlawful for NSW government agencies to seek, or even consider, local employment and business growth opportunities at any stage of the procurement process,
- Slashing red tape for small and medium enterprises who contract with the NSW Government, and increasing the threshold for direct engagement to $250,000,
- Announcing plans to legislate a Jobs First Commission which will mandate local tender weightings and minimum skills requirements, and monitor their implementation,
- Announcing plans to create a debarment scheme to ban dodgy suppliers from engaging with the NSW Government.
Last year the NSW Government spent approximately $42 billion on goods and services.
Chaired by the Hon Dr Sarah Kaine MLC, the inquiry received 64 submissions from a range of stakeholders including industry, unions, associations and councils, academics and members of the public. It held a series of public hearings to hear first-hand from industry professionals, key stakeholders and government agencies.
The inquiry’s first report, and the full NSW Government response are available on the NSW Parliament website at <https://www.parliament.nsw.gov.au/committees/inquiries/Pages/inquiry-details.aspx?pk=3014>.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos:
“We have the opportunity to be smarter with our procurement dollars, better leveraging them to deliver better outcomes for businesses and workers across NSW.
“The inquiry’s report made it clear that there is significant reform required to ensure the effective operation of the procurement framework to maximise value-for-money for taxpayers.
“By reforming the way the government spends its precious procurement dollars we can unlock new opportunities for local suppliers and small businesses.
“The inquiry’s findings demonstrate that the reforms we have already put in place have us on the right path. There’s clearly more work to be done to make sure more of the NSW Government’s $42 billion spend can go to support local jobs and local industries.
“I thank the committee for their work and look forward to receiving their final report.
inquiry chair Dr Sarah Kaine MLC:
“This is an important inquiry, given the vital role government procurement plays in the NSW economy. With almost $42 billion spent each year, we need to make sure that this spend factors in the overall impact and cost to our community not just the ticketed price.
“I am pleased the Government will be supporting all nine recommendations, it highlights this Government’s commitment to ensuring our procurement system is fit for purpose, and to leverage the power of government procurement to promote local jobs and foster our local manufacturing industry.”