Senate Finance and Public Administration References Committee Report on Commonwealth procurement procedures No. Recommendation Government Response 2.34 - The committee recommends that the From a practical perspective, any alternate test for capturing data on the Not supported. Department of Finance (Australian Government quantity of Australian goods and services procured would be impractical to implement Procurement Coordinator) consult with Australian and impose significant compliance costs. In particular, a consensus definition of what is industry, and in particular Australian is difficult to achieve. For example, businesses may be ‘Australian’ ‘Australian’ manufacturers, to develop an alternate test which resellers of goods manufactured entirely or partially overseas; equally, non-Australian can provide more meaningful information on the businesses may deliver services that are developed and delivered within Australia, by quantity of Australian content in goods and Australians. services procured by the Commonwealth government, and how to build this information into In addition, the creation and maintenance of a supplier register, along with the associated data collected in AusTender. authorisation and data quality controls, would impose significant red tape on suppliers for limited benefit. 3.19 - The committee recommends that the Not supported. The Department of Finance (Finance) has previously advised that Department of Finance provide a detailed international agreements limit the extent to which the Government can preference local explanation of the barriers to developing a suppliers. Finance has also advised that the CPRs incorporate relevant provisions from preferencing scheme, takes into account the Australia and New Zealand Government Procurement Agreement, Australia Chile Australia's free trade obligations. Free Trade Agreement, Australia United States Free Trade Agreement, and Singapore Australia Free Trade Agreement. The texts of these agreements are publicly available and detail the commitments entered into by Australia. Free trade agreements (FTAs) give Australian producers and manufacturers access to a market of billions of consumers rather than just Australia’s 23 million. To achieve the full potential of our trade, we must overcome any barriers that face our exporters, whether tariffs or other impediments, which are attached to our goods and services. Reduced tariffs give Australian companies greater opportunities for expansion into previously protected markets.
Senate Finance and Public Administration References Committee Report on Commonwealth procurement procedures No. Recommendation Government Response 2.34 - The committee recommends that the Department of Finance (Australian Government Procurement Coordinator) consult with Australian industry, and in particular Australian manufacturers, to develop an alternate test which can provide more meaningful information on the quantity of Australian content in goods and services procured by the Commonwealth government, and how to build this information into data collected in AusTender. Not supported. From a practical perspective, any alternate test for capturing data on the quantity of Australian goods and services procured would be impractical to implement and impose significant compliance costs. In particular, a consensus definition of what is ‘Australian’ is difficult to achieve. For example, ‘Australian’ businesses may be resellers of goods manufactured entirely or partially overseas; equally, non-Australian businesses may deliver services that are developed and delivered within Australia, by Australians. In addition, the creation and maintenance of a supplier register, along with the associated authorisation and data quality controls, would impose significant red tape on suppliers for limited benefit. 3.19 - The committee recommends that the Department of Finance provide a detailed explanation of the barriers to developing a preferencing scheme, takes into account Australia's free trade obligations. Not supported. The Department of Finance (Finance) has previously advised that international agreements limit the extent to which the Government can preference local suppliers. Finance has also advised that the CPRs incorporate relevant provisions from the Australia and New Zealand Government Procurement Agreement, Australia Chile Free Trade Agreement, Australia United States Free Trade Agreement, and Singapore Australia Free Trade Agreement. The texts of these agreements are publicly available and detail the commitments entered into by Australia. Free trade agreements (FTAs) give Australian producers and manufacturers access to a market of billions of consumers rather than just Australia’s 23 million. To achieve the full potential of our trade, we must overcome any barriers that face our exporters, whether tariffs or other impediments, which are attached to our goods and services. Reduced tariffs give Australian companies greater opportunities for expansion into previously protected markets.
australian-government-response-to-the-senate-inquiry-into-commonwealth-procurement-procedures.docx