A $367 billion infrastructure pipeline is at risk due to government practices that are "killing" small to medium businesses, civil contractors representing 40,000 workers say.
Senator Pocock said a message he regularly hears from small businesses is that they want to be suppliers to the government rather than recipients of government grants.
Small business operators who believe they have been locked out lucrative government contracts have been invited to share their views with a formal inquiry into the multi-billion dollar system.
The multi-billion dollar flow of taxpayer funds to small business contractors will come under investigation by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), as the federal government attempts to lock in its new small business procurement target.
The Australia-UK free trade agreement is set to give consultancies in both countries access to more government work, unlocking contracts at sub-national levels such as work for state and territory governments.
The landmark free trade deal includes giving UK firms guaranteed access to bid for an additional $18 billion worth of Australian public sector contracts each year.