The Minns Labor Government is delivering on its commitments to protect human rights in government supply chains by issuing a Ministerial Direction that will require NSW Government agencies to take stronger action to address modern slavery risks.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos has directed all NSW Government agencies to include modern slavery tender clauses in procurement categories identified as 'high risk'. It will come into effect next month with a six month transition period, giving agencies time to adjust their procurement processes.
This means that any supplier bidding for high-risk government contracts will need to clearly demonstrate the steps they are taking to prevent modern slavery in their operations and supply chains.
It demonstrates the NSW Government's commitment to improving procurement practices to address modern slavery.
Model clauses have been designed by the Office of the NSW Anti-slavery Commissioner as a resource for agencies implementing the NSW Anti-slavery Commissioner's Guidance on Reasonable Steps. Agencies will have flexibility in how they comply - such as using supplier assessment questionnaires - while ensuring the Direction's effectiveness.
This reform reflects collaboration between the NSW Procurement Board and the NSW Anti-slavery Commissioner. The Minns Labor Government has already delivered significant reforms to protect human rights in procurement, including:
- Strengthening the Supplier Code of Conduct to clarify expectations on modern slavery and human rights.
- Rolling out education modules on managing modern slavery risks to more than 4,000 government personnel.
- Supporting 20 of 22 recommendations from the Parliamentary Inquiry into procurement, including mandating modern slavery clauses and incorporating modern slavery standards into compliance checks.
- Implementing the Guidance on Reasonable Steps and develop practical tools such as the Inherent Risk Identification Tool.
- Committing to the establishment of a debarment regime to ban suppliers engaging in serious misconduct from doing business with the NSW Government.
The Ministerial Direction is part of a broader procurement reform agenda that includes increasing the threshold at which government agencies can award contracts to small businesses without going to tender to $250,000 and mandating local market testing for government contracts above $7.5 million.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said:
"The NSW Government is committed to addressing modern slavery risks in our supply chains. This Direction is an important outcome of the Government's ongoing work with the NSW Anti-slavery Commissioner.
"The NSW Government spends around $40 billion on goods and services each year. This buying power gives us a unique opportunity to influence supply chains, demand ethical practices, and dismantle systems of exploitation.
"Job creation should go hand-in-hand with ethical sourcing. We want to see new jobs that are sustainable, and supply chains managing the risk of exploitation."
NSW Anti-slavery Commissioner Dr James Cockayne said:
"This Direction is an important step towards establishing NSW as a model contracting party on anti-slavery issues. It will help NSW Government entities take reasonable steps to manage modern slavery risks in their supply-chains.
"Mandating the Model Tender Clauses for high-risk procurements means that agencies must, from 1 July next year, assess suppliers against the Guidance on Reasonable Steps I issued two years ago.
"I look forward to continuing to work with NSW Government to further progress implementation of this Guidance, including in contracting, in months ahead."
