Department of the Legislative Assembly, Northern Territory Government

Mr BARRETT - 2015-12-03

The Northern Territory government is one of the largest single purchasers in the Northern Territory. Can the minister please update this House on what measures the Country Liberal government is taking to ensure Northern Territory businesses and those which invest in the Northern Territory benefit from our government business?

ANSWER

Madam Speaker, I thank the member for Blain for his question; it is another demonstration that the Territory government is looking after Territorians and listening to them.

Today the Country Liberal government announced major procurement reforms and initiatives which will help local businesses secure a greater percentage of the billions of dollars of government work awarded each year. The initiative is increasing minimum weighting in favour of local content and benefits from 20% to 25% in all quotes and tenders. This is the highest in Australia. This is about jobs for locals and supporting local businesses and their families.

The Buy Local Plan, which used to be Local Development and Value Adding, includes introducing mandatory, local involvement in all requests for quotes up to $100 000. To support this measure the new term ‘Territory enterprise’ will be introduced to identify local businesses as an enterprise operating in the Northern Territory, with a significant, permanent presence in the NT and employing NT residents.

We are increasing the minimum weighting of local content and benefits from 20% to 25% on all quotes and tenders. We are ensuring that local content and benefit commitments included in the tender responses are carried into the contract terms and are monitored throughout.

Further, we are establishing an independent panel of Territorians to review and advise on Buy Local aspects of tender responses and contracts worth more than $5m. This will enhance the transparency of the procurement process and ensure government evaluation teams have access to all relevant information in making procurement decisions. This advisory panel will also play a role in ensuring these commitments are followed through and local benefits realised.

Our Buy Local Plan will ensure $3bn spent annually on goods and services by the Territory government delivers the greatest benefits for Territory businesses, our families and our economy. We have listened, and the concerns of our business community and our Buy Local Plan will drive greater emphasis on achieving local content and benefits from NT government procurement.

The Giles government has championed this course of business since coming to government by slashing red tape, and has undertaken a broad range of reform initiatives to make procurement processes simpler, more efficient and more transparent. About 240 pieces of red tape have been cut so far. We are still finding red tape and we will continue until we can get rid of every piece of red tape we can.

Business told us the existing Local Development and Value Adding process was too complicated and local businesses were missing out. The Chamber of Commerce Northern Territory and the Industry Capability Network NT have welcomed this policy. There are 1480 registered small and medium enterprises in the Territory, and this policy reflects the Country Liberal government’s commitment to supporting local business. You can trust this government to take care of Territorians.
Last updated: 09 Aug 2016