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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2013-11-26 Daily Xml
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GOVERNMENT CONTRACTS

The Hon. D.G.E. HOOD (15:10): I seek leave to make a brief explanation before asking a question of the minister representing the Minister for Finance concerning the granting of government contracts to interstate and overseas companies.

Leave granted.

The Hon. D.G.E. HOOD: My political party certainly supports free markets and strong competition but, following the printer cartridge scandal last year, the government negotiated a whole-of-government contract for the supply of stationery with interstate suppliers, much to the disappointment of local suppliers in most cases, who had not received any complaints from the government up to that point, they have claimed.

The annual report of the State Procurement Board, released a week or so ago, has shown that 49 per cent of the total value of all government contracts have gone to interstate or overseas companies. The total value of all contracts concerned was $4 billion. Thankfully, the percentage of value going to interstate and overseas companies has dropped from the high point of 70 per cent in the 2010-11 financial year to 49 per cent, still well above the 29 per cent average for the six years from 2004 to 2010. As to the percentage of numbers of contracts going interstate or overseas, the 2013 figure of 35.8 per cent is the second highest in at least the last nine years. My questions are:

1. Does the government regard it as satisfactory that 49 per cent of the total value of its contracts in South Australia (or approximately $2 billion worth of work) in one single year is granted to interstate or overseas companies?

2. What effect would it have on the local economy and local employment if, say, half of the contract value presently going interstate could go to South Australian organisations instead?

3. Does the 49 per cent of contract value going interstate and overseas indicate a lack of confidence in South Australian companies or the products they make?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (15:12): I thank the honourable member for his important questions and will refer them to the Minister for Finance in another place and bring back a response.

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