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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2016-06-21 Daily Xml
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Government Procurement

The Hon. M.C. PARNELL (14:53): I seek leave to make a brief explanation before asking a question of the Minister for Manufacturing and Innovation on the subject of government procurement—

Leave granted.

The Hon. M.C. PARNELL: —which follows very nicely from his previous answer. The federal government is currently considering whether to sign or accede to the World Trade Organization's government procurement agreement (GPA). According to the DFAT website:

The GPA is a WTO plurilateral agreement which opens government procurement markets between its members. The Agreement's main principles are transparency and non-discrimination. It requires GPA members to offer other members' suppliers conditions 'no less favourable' than domestic suppliers. In addition, the GPA provides for domestic review procedures to enable aggrieved firms to seek a review of procurement decisions.

If Australia signs this agreement, then aggrieved overseas steel manufacturers who miss out on state government contracts, or perhaps even Aboriginal firms, as part of the Aboriginal connect scheme, who get contracts and overseas companies miss out—we could find ourselves being sued in court. So, it is no surprise therefore that trade unions and other community groups are urging Australia not to sign. They include the Australian Fair Trade and Investment Network, the Australian Manufacturing Workers' Union and the Textile Clothing and Footwear Union of Australia.

Australia presented its accession offer to the WTO Committee on Government Procurement on 16 September last year. This initial offer was discussed during a meeting of the WTO Committee on Government Procurement in Geneva in February this year. Australia is now considering feedback from GPA members, in consultation with state and territory governments, before signing the agreement. According to DFAT, state and territory governments have been fully consulted. So my questions to the minister are:

1. What feedback has the state government given to the federal government, or to put it more directly: have you told the federal government that this is unacceptable for South Australia for the federal government to sign this agreement?

2. Is the minister concerned that this new trade agreement could seriously undermine the state's policy of local procurement of Australian steel for use in government infrastructure projects?

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy) (14:56): I thank the honourable member for his question and his interest in this matter. Matters to do with trade and international agreements—and I must admit that I'm not intimately familiar with all the nature, consequences and effects of plurilateral agreements that may or may not be entered into, however, they are serious questions that the member asks and I will refer them. I suspect it's the Treasurer, but I will check to see. I suspect also that the Minister for Investment and Trade has part responsibilities in this area. I will refer them to the appropriate minister in another place and bring back to the honourable member a reply.

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