NSW launches Local Jobs First Commission legislation

The NSW Government has recently announced that local workers and businesses will be prioritised for government tenders, under its Local Jobs First Commission legislation.

The reform puts three priorities at the centre of every government purchase: locally produced goods and services, local jobs and skills, and support for local small and medium-sized businesses.

The government says the Bill has been developed following consultation with unions, businesses and industry groups, which showed strong, broad-based support for reform. During the consultation period, more than half of respondents were small and medium businesses, reflecting the demand for a more level playing field.

The Bill delivers on those priorities by:

• A Local Procurement Policy will prioritise local workers and businesses with a 30% tender weighting for local jobs and skills, local content, and small and medium business participation, and will embed training requirements for apprentices and workers learning new skills on major government projects, helping to re-build the state’s skills base.
   
• A Local Jobs First Advisory Board will inform policy that will boost local supplier competitiveness, and Local Procurement Plans will be required for major contracts to lock in commitments to local jobs and local content.
   
• A Local Jobs First Commissioner will champion and monitor local content, local jobs and skills and small and medium business participation across government procurement.
   

The Bill will also enable a supplier debarment scheme to remove suppliers found to have committed serious misconduct from the government supply chain. The debarment scheme responds directly to the Independent Commission Against Corruption’s Operation Hector report. It will protect honest businesses and ensure public money is spent responsibly and with integrity.

“This Bill delivers on an important election commitment, putting local businesses, local workers and local communities at the centre of how government spends its valuable procurement dollars,” said Minister for Domestic Manufacturing and Government Procurement Courtney Houssos. “We are backing local industry, supporting small businesses, strengthening local supply chains and building workforce capability.

“This is a significant reform, made even more important in a time of global economic uncertainty.”

“Small and medium businesses should have better access to government contracts. This bill is a positive step toward lifting local procurement ambition by prioritising local businesses via better tender weightings and targets,” said Business NSW CEO Daniel Hunter. “It is critical that we make it easier for local suppliers, particularly SMEs, to participate and compete. That means cutting red tape, reducing the time and cost of bidding, and focusing on the real barriers our members consistently raise.”

Image credit: iStock.com/syahrir maulana