‘Buy Queensland’ policy at odds with state’s free-trade commitments

ANNASTACIA Palaszczuk has been accused of flip-flopping after announcing her “Buy Queensland” policy just days after recommitting the state to free trade.

Premier Annastacia Palaszczuk says Queensland will no longer be constrained by free-trade agreements that have seen jobs go offshore or interstate. Picture: AAP Image/Glenn Hunt

DAYS before Queensland Premier Annastacia Palaszczuk announced a “Buy Queensland” first policy, thumbing her nose at free-trade agreements, she wrote to the Federal Government recommitting the state to free trade.

Federal Trade Minister Steve Ciobo accused the Premier of supporting two opposing policies within seven days of each other.

He warned that Queensland companies could be shut out of export opportunities by the policy, but the State Government says it’s a sensible way of giving local businesses an advantage.

Trade Minister Steve Ciobo says the “Buy Queensland” policy could shut local companies out of export opportunities. Picture: AAP Image/Lukas Coch

Ms Palaszczuk announced the Buy Queensland policy on the weekend. It will give preference to local businesses when bidding for government contracts on supply, services, infrastructure and maintenance.

Applying from September 1, the policy will initially affect the Australia-New Zealand Government Procurement Agreement but has scope to be broadened to include free-trade agreements.

“No longer will we be constrained by free-trade agreements that have seen jobs go offshore or interstate,” Ms Palaszczuk said on Saturday.

Mr Ciobo said the policy may sound appealing but it would jeopardise export opportunities for Queensland.

“Potentially we could see this position putting Queensland in breach of our obligations, which would give countries an excuse to close off market access to our exporters,” he said.

“The most extraordinary aspect of the Premier’s announcement on the weekend was that only last week the Premier wrote to me recommitting Queensland to being an open economy.”

The State Government says Queensland’s exports have increased from $45 billion to $63 billion since it came to power. Picture: Claudia Baxter

A Palaszczuk Government spokesman said the policy was a sensible way of putting Queensland jobs first but it didn’t exclude interstate or overseas deals.

“It doesn’t make sense that (under the Australia-New Zealand Government Procurement Agreement) a company in Christchurch stands on an equal footing with a company in Cairns when it comes to doing work on a project in far north Queensland,” the spokesman said.

Under the policy, a “local supplier” will be defined as a business that maintains a workforce within a 125km radius of where the goods or workers are needed.

Mr Ciobo said FTA negotiations were taking place with Hong Kong, Peru, Chile, Columbia, Mexico and Indonesia.

The State Government spokesman said Queensland’s exports had increased from $45 billion to $63 billion since it came to power.