The NSW Government has announced it 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.
“We have the opportunity to be smarter with our procurement dollars, better leveraging them to deliver better outcomes for businesses and workers across NSW,” said Ms Houssos.
“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 Government says the report’s recommendations 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.
Minister Houssos said the Government was committed to reforming government procurement to encourage the development of local industries and remove barriers to local growth.
Last year the NSW Government spent approximately $42 billion on goods and services.
Chaired by 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.
“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,” said Dr Kaine.
“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.”
“I thank the committee for their work and look forward to receiving their final report,” said Minister Houssos.
The full NSW Government response is available via the NSW Parliament website here.
