The NSW Government will introduce a series of new measures to support NSW jobs and businesses and encourage the development of local industries, removing barriers to local growth.
These policy changes have the backing of workers and industry and will transform the way the government spends its precious procurement dollars on goods and services.
Our announcement today delivers the next step on an important election commitment we made to support local jobs and local businesses, said minister for Domestic Manufacturing and Government Procurement, Courtney Houssos.
These changes will support our local industries and give them new opportunities to secure a larger slice of the NSW government's $42 billion procurement spend
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos will on Tuesday instruct the NSW Procurement Board to axe prohibitions on local content rules.
Those rules made it unlawful for NSW government agencies to seek, or even consider, local employment and business growth opportunities at any stage of the procurement process.
This harmed local businesses at a time when they needed access to valuable procurement opportunities.
NSW government agencies can now consider local content and local development opportunities when suppliers bid for government contracts.
To ensure agencies embrace the policy reversal, minister Houssos has issued a new direction to the NSW Procurement Board called 'If not, why not'.
Under this direction, the NSW Procurement Board will mandate that NSW Government agencies engage with local NSW suppliers before going to tender for projects worth more than $7.5 million.
The new rules also mandate that if a contract worth more than $7.5 million is awarded to a supplier outside of NSW, agencies will need to undergo a 'please explain' process prior to the contract being awarded, outlining why a local supplier was not successful.
The definition of a 'local supplier' for the purposes of the 'If not, why not' direction is limited to NSW enterprises.
This policy will refocus agencies on supporting jobs and local production in NSW and will assist with the State Government's plans to boost the manufacturing sector.
Purchasing the cheapest goods and services does not always equate to 'value for money' for the people of NSW.
A more robust approach to 'value for money' considers factors like supporting employment opportunities and developing regional economies.
With these changes, the NSW Government is delivering confidence to domestic and international investors and suppliers alike.
The NSW Government will also legislate to create the Jobs First Commission to oversee the implementation and enforcement of local content measures.
It will help grow domestic industries and jobs for local workers.
This includes enacting key measures including:
A local content policy to implement a minimum 30 per cent weighting to NSW Government tenders worth more than $7.5 million that captures local content, job creation, small business and ethical supply chains.
A Future Skills Guarantee with workforce targets, including that 20 per cent of the trades workforce on NSW Government construction or infrastructure contracts valued above $7.5 million are apprentices.
An independent advisory board with representation from across industry, small business, unions, and the public sector to provide ongoing engagement with, and advice on, government procurement policies as well as local development and industry growth strategies.
Appointing a Job First Commissioner to ensure all parties, including NSW agencies, adhere to the government's procurement rules and standards, in particular the new tender weightings rules and local content and skills requirements.
Together, these initiatives will also direct more work to the more than 100,000 apprentices and trainees currently registered in NSW and encourage even more to pick up a trade.
The revocation of the previous government's anti-local content provisions will take effect within 45 days, while the 'If not, why not' direction will come into effect on 1 January 2025.
Consultation on an exposure draft of legislation to establish the Jobs First Commission is targeted to be released by the end of the year.
https://www.manmonthly.com.au/new-nsw-govt-measures-to-support-local-businesses-industries-and-jobs/
