Boost for our recovery

‘Buy Local’ is a state plan to spend with local enterprises

THE state government’s plan to spend more on goods and services from local providers came into effect on Friday with hopes of easing the coronavirus recession.

Finance Minister Michael Ferguson said the Buy Local Policy will boost Tasmanian businesses as they recover from the COVID impact.

“The government’s new procurement framework has been weighted to advantage local enterprises,” Mr Ferguson said. “An Economic and Social Benefits Test and associated statement will replace the Local Benefits Test and Local SME Industry Impact Statement.

“The new test will allow for greater focus on Tasmanian social and economic factors when government agencies evaluate competitive procurements.

“The Economic and Social Benefits Test will be weighted at 25 per cent of the total.”

Firms seeking government work will be asked to show if they are locally owned, have a local workforce or will engage local contractors.

Mr Ferguson said government agencies would also be allowed to approach Tasmanian businesses directly for procurements under $100,000, where there is local capability, capacity and value for money.

Tasmanian Small Business Council chief executive Robert Mallett said the new policy would give a confidence and business boost to thousands of Tasmanian businesses.

“In essence, Tasmanian small and medium businesses will get a 25 per cent head start on mainland and international competition when tendering to supply Tasmanian Government contracts,” he said.

“Crucial to the success of this policy tweak, which comes into effect today, will be instructions to all government purchasing officers that this is the new world for the next two years.

“This decision is an insightful way to get Tasmania working again, and Tasmanian businesses to see a way forward, without a huge injection of grant funds and broad support.

‘The next steps will be to see if the minister for local government will provide a similar message to Tasmania’s 29 local governments to consider the same initiative.”