Jj,, AUSTRALIA,&
PRIME MIN3STER
FOR PRESS OCTOBER 1P 1976
GOVERNMENT PUJRCHASING POLICY
New arrangements have been made to help Australian industry
obtain orders for Government purchases.
The arrangements provide for additional preference for locally
made goods in special cases.
Although the principle of ' best value for money spent' should
generally apply to Government purchases, the Government recognises
that special circumstances can exist in which preference should
be given in favour of Australian production.
It is already standard procedure for Departmental purchasing
authorities to add to tenders involving goods from overseas,
for comparison purposes, the appropriate rate of duty and
primage ( even though these are not paid by the Commonwealth)
so that the protection of normal tariffs was available to local
manufacturers tending for Government orders.
This procedure will be supplemented by new procedures for
reviewing purchases which might be placed overseas.
The Government has now established a Committee of Ministers to
examine cases in which evaluation by purchasing authorities,
on the basis of the ' best value for money' principle would lead
to goods being bought overseas.
The Committee will comprise the Minister for Administrative
Services ( Chairman), the Treasurer, and the Ministers for
Industry and Commerce, Employment and Industrial Relations,
Transport and Business and Consumer Affairs. The Minister for
Defence and the Ministers for other purchasing Departments
will be co-opted as appropriate.
The Committee will consider whether purchase from Australian
sources would assist a depressed industry or area within
Australia, or enable the establishment, development or
retention of industrial or technological capabilities required
for reasons of national security or independence.
A similar procedure operated effectively from 1961 until the
change of Government in 1972. ./ 2
O 2.
All Government Departments and other bodies are being directed
to ensure that Australian firms are given reasonable opportunity
to bid for all requirements within local capabilities.
The Government reaffirms and will further develop its offsets
policy ( formerly known as the Australian Industry Participation
Scheme) under which Australian industry is enabled to obtain
work as offsets against major overseas purchases by the Government.
This program has already produced over $ 100 million worth of work for
Australian industry, and more can be expected.
The Government believes these new arrangements will help
Australian industry benefit from Government purchasing programs.