Media Statements - Minister to launch new Buy Local policy

20/10/00

Works and Services Minister Rob Johnson will announce details of the State Government’s new Buy Local policy in Katanning today.

Mr Johnson said the new policy would make it easier for small and regional businesses to sell goods and services to Government.

Buy Local was formulated following extensive consultation with small business owners throughout the State.

The policy is an Australian first, with Western Australia becoming the only State to use Government buying to assist small business and regional economies.

“The State Government spends $4.6 billion per annum on goods, services and works,” Mr Johnson said.

“The new Buy Local policy will see a greater proportion of that spending directed back into local businesses and their communities.

“This policy really levels the playing field for smaller businesses because it provides greater flexibility in the assessment of contract costs.”

The Buy Local policy, for the first time, imposes on Government agencies a minimum local purchasing target.

Government department heads will be required to source at least 70 per cent of their goods and services locally wherever practicable.

Government Trading Enterprises have not been exempted from Buy Local.

The new policy also ensures that:

whole-of-life costs, local business capability and the benefits of contracting with local businesses are given more weight in the consideration of contracts;
the regional price preference is changed to a regional business preference, which reflects the intent of the policy more clearly; and -
more emphasis is placed on the obligations of contract managers to ensure contractors meet their buying local commitments.

Mr Johnson said the policy, coupled with new advances in e-procurement systems being developed by the State Government, had the capacity to open up whole new markets to WA businesses.

“Buy Local gives small and regional businesses a far stronger platform from which to bid for Government contracts,” the Minister said.

“As the policy is rolled out, we expect major flow-on effects into the regional economy and a welcome boost to many country towns throughout WA.

“Importantly, this policy recognises the importance of small and regional businesses as the economic and social drivers of our local communities.”

Media contact:
Hartley Joynt, acting for Fran Hodge 9215 4800