Project

State and Local Government Capital Expenditure and Procurement

Project name

State and Local Government Capital Expenditure and Procurement

Industry sector

Responsive governments

Objectives

Description

The South Australian Industry Participation Policy (IPP) specifies that for all expenditure above $220,000, the government must determine if there is a business in the state or the region that can deliver the product or service.

Contracts totalling in excess of $1 billion of infrastructure spending by the State and Federal Government in northern Adelaide will require a minimum 20% Industry Participation weighting favouring local jobs in accord with recent legislation.

In addition, the Industry Advocate will also work with the three northern councils of Playford, Salisbury and Port Adelaide Enfield to explore an extension of the policy to their combined annual $160 million capital expenditure.

The State Government’s decision to increase industry participation weightings to at least 20% for projects connected to the Northern Economic Plan will support workers in the automotive supply-chain to transition to work on Government contracts.

Projects occurring in the area include upgrades to schools, children’s centres and public housing, as well as $55 million over three years to build a new Gawler East Collector Link Road.  In addition, a new minimum 20% weighting will also apply to the recently announced $985 million Northern Connector project, jointly funded by the Federal and State Governments.

The Office of the Industry Advocate will run a series of Meet the Buyer events and Supplying to Government Workshops in conjunction with local government, focussed specially on the projects in northern Adelaide.  This will create enormous potential for northern region businesses employing South Australians.

The policy aims to deliver greater economic contribution to the state from procurement, with benefits including:

The policy is tiered to ensure the costs of complying are in proportion to the opportunity for local industry participation and to minimise red tape for both businesses and government.

The project presents enormous potential for local businesses to access opportunities for work in the region, driving business growth and employment opportunities in the North.

Commencement date

May 2016

Contact

Office of the Industry Advocate
Mr Ian Nightingale
Industry Participation Advocate
Phone 8226 8956
Web Industry Participation Policy