Labor to back local companies for government business
In a pre-election pitch to workers, small business and unions, Bill Shorten will announce a new policy aimed at giving Australian companies a better chance of winning tenders for major projects.
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OPPOSITION leader Bill Shorten will today announce a plan to favour local businesses and boost their chances of getting a slice of $50 billion in government contracts each year.
In a pre-election pitch to workers, small business and unions, Mr Shorten will today in Maryborough announce his “Local Projects, Local Jobs” policy intended to give Australian companies a better chance to win tenders for major projects.
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There will be a Queensland focus to federal politics this week as Prime Minister Scott Morrison is also expected to spend the next three days in the north of the state.
The Palaszczuk Government came under fire for its “Buy Queensland”, which thumbed its nose at free-trade agreements and gave weightings in favour of local businesses and sparked anger from New Zealand.
But Federal Labor’s industry spokesman Kim Carr said there would be no weighting for Australian companies bidding for work this time, insisting a Shorten Government would meet all international trade obligations.
“It’s a complementary to the state government policy. It’s not the same as the state government policy,” he said.
Instead, companies bidding contracts larger than $250 million will have to lodge an Australian Industry Participation plan, nominating how they will employ Australian workers and work with local firms, and one in 10 jobs will have to go to apprentices.
For projects over $10 million, bidders will have to show how they will support jobs, such as using local suppliers.
Anyone who wins a contract will have to employ an on-the-ground contact to inform local suppliers about subcontracting opportunities, and there will be increased market testing for new jobs to cut back on temporary workers’ visas.
Mr Shorten, who is expected to make several jobs-and-economy focused announcements in Queensland this week, said the policy would stop smaller Australian suppliers being locked out by multinationals.
“If bidders on large government contracts can’t show how they’ll support competitive local business and local jobs, then they shouldn’t be getting contracts. It’s simple — no local jobs, no contract,” he said.
He said tender processes would still focus on value for money, but there would be greater emphasis put on buying local, employing locals.
There will also be “supplier advocates” appointed for industries such as rail and steel businesses bidding for international contracts.
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