The New South Wales Parliament is launching an inquiry into the government’s procurement framework and practices in response to concerns about the decrease in the state’s local manufacturing and local content under the previous Liberal-National government.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos, who raised the concerns, said the previous Liberal-National Government “decimated the state’s manufacturing industry over more than a decade by sending major projects and the jobs they support overseas.”
“It will take time to rebuild the sector after the previous government’s failures and the inquiry will help direct critical reforms,” Houssos added.
Over the last 12 years, billions of taxpayer dollars have been invested in interstate and overseas businesses, the NSW government said in a media release. During this period, the state missed the opportunity to secure local contracts and create thousands of jobs.
The inquiry, to be conducted by the NSW Legislative Council’s Standing Committee on Social Issues, will look into how the state can maximise value for money; increase transparency; promote better social, economic, and labour market outcomes; increase procurement from Aboriginal-owned businesses, women-owned businesses and social enterprises; and boost skills and training in the local manufacturing industry.
“This inquiry will consider the potential for procurement to contribute to the social development of the people of NSW, encourage ethical conduct, domestic manufacturing, innovation and inclusion,” said Inquiry Chair Sarah Kaine. “We should not have a situation where companies that attract public funding do not adhere to accepted legal and moral standards of fairness.
A McKell Institute report from 2021 revealed that thousands of jobs would have been created in NSW if the state government contracted local train manufacturers instead of outsourcing offshore.
The state government spends approximately $37 billion on goods and services, construction and other suppliers annually.
Minister Houssos is urging interested parties to make a submission to the inquiry to help inform its recommendations.
Results from the inquiry are expected to be released by July 2024.
