Focus on transparency, simplicity and support for local jobsin government response to procurement inquiry

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 .

Quotes attributable to 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.

Quotes attributable to inquiry chair Dr Sarah Kaine MLC:

“This is an important inquiry, given the vital role government procurement plays in the NSW
economy. With almost $42billion 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.”