The NSW Parliament will launch an inquiry into the state's procurement framework and practices.
The inquiry was established in response to concerns raised by the Minister for Domestic Manufacturing and Government Procurement Courtney Houssos about the decrease in local manufacturing and local content under the previous Liberal-National Government.
Over the last 12 years, the previous Liberal-National Government spent billions of taxpayer dollars on interstate and overseas businesses. They allowed key government contracts to leave NSW, missing the opportunity to create thousands of local jobs.
A McKell Institute report from 2021 found that thousands of jobs would have been created in NSW had the previous Liberal-National Government contracted local train manufacturers instead of going offshore.
The NSW Government spends about $37 billion on goods and services, construction and with other suppliers annually.
The NSW Government is committed to transforming the state's procurement framework and practices. Doing so can promote local industries, accelerate economic growth, promote regional development, and ensure jobs remain onshore.
The NSW Legislative Council's Standing Committee on Social Issues will undertake an inquiry and assess how to:
- 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
- boost skills and training.
The inquiry will be chaired by the Hon Dr Sarah Kaine MLC.
The Minister for Domestic Manufacturing and Government Procurement encourages interested parties to make a submission to the inquiry to help inform its recommendations.
The inquiry is expected to hand down its findings by July 2024.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said:
"The former 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.
"We are committed to leveraging the power of government procurement to promote local jobs and foster our local manufacturing industry.
"We are committed to creating good, well paid and secure jobs right across the state."
"We want workers, business and investors to know we're backing NSW."
Inquiry Chair Sarah Kaine MLC said:
"I am an advocate for governments using their economic weight in publicly funded supply chains to promote better social, economic and labour market outcomes.
"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.
"We should not have a situation where companies that attract public funding do not adhere to accepted legal and moral standards of fairness."
