Government Procurement

Ms COOK (Fisher) (14:31): My question is to the Minister for Small Business. What initiatives has the Office of the Industry Advocate—

Mr Marshall interjecting:

The SPEAKER: The leader is defying my ruling.

Ms COOK: Thank you. I will start again. My question is to the Minister for Small Business. What initiatives has the Office of the Industry Advocate developed to assist small business to benefit from recent changes to procurement policy?

Members interjecting:

Ms COOK: Thank you.

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (14:32): Since establishing the industry participation—

Mr Tarzia interjecting:

The SPEAKER: The member for Hartley is warned for the second and final time. He no longer has 'benefit of clergy'.

The Hon. A. KOUTSANTONIS: Since establishing the Industry Participation Advocate in 2013, the state government has approved a wide range of reforms and is supporting local businesses and improving their chances of winning government work. I know the member for Fisher was very keen on seeing local businesses in her electorate, and she was successful in winning in the most recent by-election in large part due to her advocacy and the good work of the Leader of the Opposition.

Mr Marshall: She got 26 per cent of the vote.

The Hon. A. KOUTSANTONIS: Yes. From 1 January this year, changes to procurement policy require that when agencies of the government intend to purchase any goods or services above $22,000—that will probably rule out Wokinabox—they must first determine whether the goods or services they are purchasing—

Mr KNOLL: Point of order, sir. Both changes or reforms that I think the Treasurer is about to refer to are detailed in the email which you have in your inbox, unless—

Ms Vlahos: You can't guess in advance.

The SPEAKER: I agree with the member for Taylor's interjection that you can't have an anticipatory point of order. However, I do have the published statement in front of me and I will check it against delivery.

The Hon. A. KOUTSANTONIS: Thank you, sir. From 1 January this year, changes to procurement policy—

Members interjecting:

The SPEAKER: The Treasurer has the floor.

The Hon. A. KOUTSANTONIS: Thank you, sir—require that when agencies of the government intend to purchase any good or service above $22,000, they must first determine whether the goods or services they are purchasing can be sourced from within the state or a region of the state.

Mr KNOLL: Point of order, sir. The $22,000 threshold is not new news. It is Office of the Industry Advocate information that I have read six to 12 months ago.

The SPEAKER: No, I don't uphold the point of order.

The Hon. A. KOUTSANTONIS: As is the published fiscal outlook, but you ask questions about that. This is a first positive step for local suppliers to ensure that their products are being considered first and foremost in local projects. In addition, on advice from the industry advocate a number of the government's major projects have recently included a 15 per cent industry participation weighting, which means tenderers who can deliver more local jobs (like in Fisher), local investment or local supply inputs will boost their chances of winning work.

Another important initiative established by the Industry Participation Advocate is the Meet the Buyer program, which provides opportunities for local businesses to meet with key staff of agencies to promote their particular business. I understand that the Office of the Industry Advocate has partnered with the Eyre Peninsula Local Government Association to conduct a very successful regional Meet the Buyer event on Eyre Peninsula. This event was the first of its kind to combine state and local government, with approximately 140 local businesses attending, giving local businesses a better understanding of public sector procurement and projects proposed for the region.

In addition to Meet the Buyer events, the industry advocate has conducted 15 tender-ready workshops which assist small businesses to better understand the government procurement process. It is important to note that not only does the work of the Industry Participation Advocate assist our local businesses to win work in our own state, but it also has been able to assist South Australian businesses to successfully compete for work interstate.

RPC Pipe Systems is a South Australian advanced manufacturing company that specialises in water supply solutions, employing more than 60 skilled staff at its Lonsdale plant. Following representation by the industry advocate, RPC has recently been awarded the contract for the glass reinforced plastic piping for the Sunraysia modernisation project in Victoria, with a contract value of $3.5 million to $4 million.

The advocate has also been actively looking at ways to reduce the regulatory burden on businesses when dealing with the government. A single prequalifying process for the whole of government reduces the need for multiple prequalifying efforts, thereby reducing form filling and red tape while also saving businesses more than $60,000 in 2014-15.

The government has also reviewed the limitations of liability for low-risk contracts of up to $1 million, and as of February this year, liability on low-risk contracts up to $1 million has been capped at five times the contract value.

The SPEAKER: Time has expired.

Mr TARZIA: Supplementary, sir, if I may?

The SPEAKER: You may, yes, of course.

The Hon. T.R. Kenyon interjecting:

The SPEAKER: The member for Newland is wrong.