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Public procurement localisation
On July 28, 2009 the Australian Government, the Department of Innovation, Industry, Science and Research released a "Boosting Australian industry participation" policy aimed to give Australian industry the best possible chance of winning new work - public sector and private sector. The policy requires tenderers for government work to specify the use of Australian suppliers in every bid. Thus all tenderers must disclose the suppliers they work with.
The Australian Government motivates the move with the fact, that since the government has invested 77 billion USD in shielding Australia from recession, it wants to see Australian companies benefit from these projects first. The Government wants to achieve this through increased transparency of the tenders and additionally increase the competitiveness of local suppliers in manufacturing, construction and services. Thus, the Australian Government will provide an extra $8.5 million over four years to the Industry Capability Network (ICN) through the Supplier Access to Major Projects (SAMP) program.
Additionally, according to the information from the government's website, "The Australian Government will provide $2.5 million over four years to apply the Australian Industry Participation National Framework to its own major procurement and infrastructure projects. Each of these projects will now require an Australian Industry Participation Plan setting out how those in charge will give Australian industry - particularly small and medium-sized firms - full, fair and reasonable opportunity to supply goods and services".
The government argues no preferences are given to local companies and that these measures only increase their competitiveness and transparency of tenders. In practice, the measures effectively might change the competition situation on the tenders market.
The scheme was formally implemented on 1 January 2010.
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