Business groups back Government’s “Buy Australia” push

Business groups have supported new measures from the Rudd Government designed to improve the chances of Australian businesses winning government and private sector contracts.

The new measures, announced by Federal Industry Minister Kim Carr, include:

• A requirement that firms tending for government work will be required to submit “Australian industry participation plans” that demonstrate how local suppliers will be given a “full, fair and reasonable” opportunity to supply goods and services. This measure will cost $2.5 million.
• The Government will spend $8.2 million over four years to appoint “eminent business specialists” a supplier advocates. They will “champion Australian industry in the government marketplace and improve competitiveness”.
• The Government’s Industry Capability Network will receive an extra $8.5 million over four years, through the Supplier Access to Major Projects (SAMP) program to give companies a better chance of securing work. The ICN uses procurement experts to link Australian companies to public and private sector projects in Australia and overseas.

“This is about improving access and building capabilities. We don’t send our athletes off to the Olympics without giving them a solid preparation. The same principle should apply to Australian industry,” Carr said yesterday.

“Our job is to make sure firms know what’s on offer and are geared up to make the most of the opportunities available. We believe Australian firms can be highly competitive on timeliness, capability, quality and whole-of-life costs.”

The measures are a win for the union movement, who had lobbied the Government hard to introduce “Buy Australia” policies into its procurement procedures.

But employer groups have also supported the new measures. Heather Ridout, chief executive of the Australian Industry Group, described the measures as “good policy” and says they will help Australian companies get a slice of the Government’s stimulus spending measures.

“The new funding will ensure that the Government’s infrastructure spending translates into orders for locally-based companies and jobs for local workers.”

While the Rudd Government has been openly concerned about any move back towards protectionist policies, Carr argues the new measures represent a more sophisticated approach to encouraging local participation in major projects.

‘This is not the lazy man’s approach to developing innovative capacity. These are not prescriptive measures to prevent international trade obligations being filled. This is designed to encourage capability.”