House debates

Wednesday, 12 August 2015

Private Members' Business

Government Procurement

11:52 am

Photo of Matt WilliamsMatt Williams (Hindmarsh, Liberal Party) Share this | Hansard source

I note the member for Makin spoke about the free trade agreements. Only just last Wednesday the Prime Minister and I attended the Adelaide produce markets out at Pooraka, in his electorate. The member for Makin well knows that the produce market signed an MOU with the Guangzhou produce markets and were very excited about the opportunity that would bring in terms of more trade, more export opportunities and more jobs for our country. As we heard the Australian Minister for Trade and Investment say yesterday in the House, this is replicated with wineries and seafood companies—the list goes on.

I have worked in the private sector and in state government. Also, I have put in tender applications for both the state government and for the federal government. Let me tell you, it is not that much fun putting these documents together. It is time-consuming and also costs money, naturally. That is why we are looking to free up regulation and reduce red tape where we can, because it is often a challenge for governments to get that balance right. That does not mean that we have to give up on reforms, like the previous Labor government did, because we are committed to making changes that will make the necessary obligations easier in terms of best practice.

Value for money is one of the things that has been mentioned in regard to procurement rules. The member for Makin just raised Rossi Boots. I was disappointed, like many of my colleagues—probably the member for Grey, as well—about the decision by the Department of Defence on that procurement contract. Governments—departments in particular—make poor decisions from time to time. The member for Makin probably reflects on SA Water buying milk from Victoria, when they should be buying milk from Fleurieu and some of the dairy producers in South Australia. I am sure the member for Makin will take that back to his South Australian Labor colleagues and tell them to get that right.

I congratulate Rossi Boots on how they have responded since that decision. They have got some great publicity. I know they were on the Today show yesterday morning. Recently, a friend said that he went out and purchased a pair of Rossi's after the good publicity they were receiving. I heard this story many times. It just shows you what good publicity can do. They have been on the front foot and they are chasing new export markets. So well done to Rossi on that and I will continue to support them. I have had many discussions with their management. They have got some good people involved, and a future for them.

I am surprised that the member for Makin did not mention the naval shipbuilding contract, because, not only was his previous Labor government asleep for six years on that but there was a great announcement last year about the Future Frigate Program. There will be thousands of jobs—2,500 jobs—for the offshore patrol vessels and the future frigates for Australia—a great decision for a continuous shipbuilding program.

Let me touch on the Commonwealth Procurement Rules. These are the facts. Over the last three years we have bought 93 per cent of services from Australian suppliers, totalling some $60.2 billion, and 60 per cent of goods from Australian suppliers. Talking about boots, I am wearing some R.M. Williams at the moment and I hope the member for Makin is wearing R.M. Williams or Rossis. Do I get any response from the member for Makin? No, obviously not.

Let's do what we should be doing; let's support the local industries. I know R.M. Williams have the contract for dress boots for our Armed Forces. It is worth a significant amount of money. In terms of the South Road procurement contract, something that I have fought hard for with the Torrens to Torrens, we have York Civil and local company Bardavcol working on that. These are massive contracts for them. These are a couple of examples of how we are supporting local industry and supporting good companies.

Getting back to defence, when you exclude defence contracts for large military items that are not going to be built in Australia, like the Joint Strike Fighter aircraft, the percentage of goods supplied by Australian suppliers increases. I know that with a Joint Strike Fighter some of the building is done by BAE Systems—the fitout of the plane in Australia. So there are these good procurement decisions being made, across the board, by the Australian government.

In closing, the submission of the Department of Finance to the Senate on the Commonwealth procurement procedures states:

The Commonwealth Government's procurement policy framework is non-discriminatory in nature.

It goes on to say:

Achieving value for money is the core principle of the CPRs and the cost of goods and services to be procured is not the sole determining factor in assessing value for money.

I am sure the minister will look at all instances where value for money is relevant and he will continue to support jobs on all fronts in South Australia.

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