Boost for local firms seeking government contracts

RULES giving local businesses a leg up in winning government contracts would be extended, Treasurer Michael Ferguson announced on Monday.

The weighting given to consideration of economic and social benefits test was increased from 20 per cent to 25 per cent in July 2020 as a pandemic stimulus measure. Mr Ferguson said the increased weighting would be continued for another two years until July 2024 as a boost for local enterprises providing goods and services to the government sector.

“I’m able to say that to the nine months to March of this year 86 per cent of government contracts worth more than $50,000 were awarded to Tasmanian businesses, which is an incredible demonstration that this policy is really working,” he said.

“Those contracts just for the nine months are worth more than $306m.

“So today’s announcement is that the government and as Treasurer I have now signed a new Treasurer’s Instruction indicating that these new rules will continue for a further two years as we continue to support Tasmanian jobs,” Mr Ferguson said.

“I know that this will be warmly welcomed by the Tasmanian business sector.

“Large and small businesses based here in Tasmania will be greatly supported as a result of this announcement.”

Cripps Nubake CEO Paul Gadomski said local support for local business was vital.

The company won a contract to supply bread to the state’s hospitals.

“We have a really large critical mass here on the island if we all work together, we can boast and prosper, one of the most strong economies in the country and for the government to take the lead and continue this policy I think it’s really exciting for Tasmania and Tasmanian business,” he said.

Small Business Minister Madeleine Ogilvie said she was “overjoyed” at the announcement.