Local focus in new Labor procurement plan

Labor leader Bill Shorten has laid out a new procurement policy aimed at ensuring small and medium local firms win more lucrative federal government contracts.

Opposition Leader Bill Shorten

Bill Shorten says a Labor government would give local firms support to win Commonwealth contracts. (AAP)

Opposition Leader Bill Shorten has promised to supercharge jobs growth in regional towns by changing the rules around government contracts.

Mr Shorten has committed a future Labor government to giving local companies much more support to win Commonwealth contracts and work on major projects.

He said the power of government spending to back local business and industry could not be underestimated and insisted the message to those vying for contracts was clear.

"No local jobs, no contract," Mr Shorten told reporters in Queensland on Monday.

"We want to make sure local communities and indeed Australia gets priority when we spend our taxpayer dollars."

Mr Shorten accepts talk of procurement rules does not dominate kitchen table discussions.

"I get that talking about procurement, it's not the sort of word you use across the top of a pub or in the local sports club or down at the school gate when you pick up the kids," he said.

"But it is actually one of the ways the Commonwealth of Australia is going to help deliver more Australian jobs."

Mr Shorten worries the government is spending $50 billion on goods and services every year but too much of the money is going to multinationals.

He fears many global giants lock out local workers by bringing in their own suppliers.

"If bidders on large government contracts can't show how they'll support competitive local business and local jobs, then they shouldn't be getting contracts."

While value for money would still be the key criteria, Mr Shorten insisted the cheapest price did not always represent the best deal.

He also dismissed suggestions Australian companies could not compete on price.

For projects over $10 million, Labor would require bidders to develop a plan for local jobs, engaging with small and medium businesses to raise awareness of upcoming tenders and subcontracting opportunities.

The opposition would also halve the existing $500 million threshold which triggers a separate local jobs policy.

Public and large private projects over $250 million would have to ensure local firms were provided with a fair opportunity to win work.

They would also be compelled to put in place an "Australian Industry Participation" plan to open up opportunities for jobs in key sectors such as rail and steel.

Labor would also demand one in 10 workers on major projects were apprentices from the local area.

"We want to see jobs for Australian manufacturing workers, we want to see jobs for Australian apprentices, and we want to see jobs in the regions."

Australia's small business ombudsman Kate Carnell said the announcement was a step in the right direction for small to medium enterprises.

But Ms Carnell said the challenge for Labor was to have a target of real work for local businesses, "not just paperclips and catering".

She said regular audits would be needed to make sure large companies delivered on their promise to engage small businesses, as well as ensuring they were not "screwed" in the supply chain.


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3 min read
Published 21 January 2019 4:24pm
Source: AAP


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