The Andrews Labor Government will review its local content policy to consider buying more local goods and services to help grow Victoria’s economy and create new jobs.
Minister for Industry Lily D’Ambroiso has released a discussion paper looking to strengthen the Victorian Industry Participation Policy (VIPP), which requires government agencies to consider competitive local suppliers when awarding government contracts.
The Victorian public sector spends more than $10 billion on procurement activities each year, including construction, goods and services.
Ms D’Ambrosio said the Labor Government is committed to improving how government procurement is used to create local jobs and boost the Victorian economy.
Since December 2014, 17 major procurement projects worth more than $6.7 billion have had minimum local content requirements set under the Labor Government’s policy.
This includes the High Capacity Metro Train (HCMT) project, which requires companies to demonstrate how they will boost local employment, training and investment through the delivery of new trains for Melbourne.
The Government also requires the use of 100 per cent local steel in the project to remove and fix 50 of the state’s most dangerous level crossings. It has also lowered the threshold for major infrastructure projects, new buildings and facilities that require local content to $50 million in order to benefit local suppliers.
A series of workshops will be held across the state with business, unions and the community as part of the VIPP review, with the strengthened policy to come into effect from 1 July, 2016.
Submissions to the VIPP discussion paper can be made until 30 November.
The discussion paper can be viewed at: economicdevelopment.vic.gov.au/about-us/strategies-and-initiatives/review-of-victorian-industry-participation-policy-dedjtr-discussion-paper.
Quotes attributable to Minister for Industry, Lily D’Ambrosio
“As the largest purchaser of goods and services in the state, it makes sense to use our purchasing power to create local jobs and boost Victoria’s economy.”
“Our approach represents a new way of procuring major infrastructure for Victoria in a way that supports and grows local industry.”
“The review of our content policy will ensure that local businesses are given the opportunity to compete for government contracts, while still achieving value for money.”
Reviewed 19 August 2020