New laws for Australian-made goods on work sites will close local content loopholes
New local content laws for taxpayer-funded projects will strengthen requirements for Australian-made equipment to be used on construction sites, after the Allan government was savaged for using steel from China on the Big Build.
Victoria
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EXCLUSIVE
New local content laws for taxpayer-funded projects will strengthen requirements for Australian-made equipment used on site — right down to the boots worn by workers.
And new powers given to the Local Jobs First Commissioner will enable them to inspect construction sites and better police procurement policies, with the potential for habitual rule-breakers to be “deprioritised” during future bids.
The new push comes seven years after Labor changed rules to boost local material used on mega projects, but which some Victorian manufacturers say are now being abused.
Critics say global companies sometimes create designs to lock in overseas suppliers — a practice that the new bill seeks to address by introducing new guidelines on prioritising Australian standards.
New ministerial powers will also be introduced to allow an industry minister to mandate locally-made uniforms and personal protective equipment (PPE) such as gloves, helmets and boots, on some mega projects.
Industry Minister Colin Brooks said the reforms have been through extensive consultation and were aimed at strengthening regional opportunities, giving businesses a fair go, and creating more “good local jobs”.
“Victorian government contracts and projects should benefit Victorian workers and businesses. This Bill puts our state and our people first. It makes sure more money spent in Victoria, stays in Victoria,” he said.
“We’re closing the loopholes, backing the Commissioner with more power, and making sure government contracts deliver for Victorians, driving local jobs, businesses and the economy.”
The new powers for the Local Jobs First Commissioner will allow for civil penalties and fines to be issued for breaches, and site inspections.
Payments will be linked to performance, and the government says that “suppliers who fail to meet their commitments can be deprioritised for future work”.
Last year, the Herald Sun revealed local steel fabricators were shedding jobs due to what they said was a betrayal of “duplicitous politicians”.
Weld Australia chief executive Geoff Crittenden pointed to 11,000 tonnes of steel imported from China for bridge structures on the $26bn North East Link as an example of where local content rules were falling down.
For that package, bidders were told they need to provide “large-scale trial-assembly off-site” in the knowledge this would be difficult for local fabricators to organise at short notice.
He said other builders on projects placed orders late, or with specifications that gave local manufacturers little time to organise bids despite those sites being years in the planning.
Victoria’s capital projects pipeline is worth about $200bn.
Over the past decade, Mr Brooks said local content requirements has been set for 382 projects, and had supported more than 60,000 local jobs.
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