Media release – Michael Ferguson, Minister for Finance, 31 July 2020 Further strengthening our Buy Local Policy to support Tasmanian businesses The Tasmanian Liberal Government is committed to supporting Tasmanian businesses to thrive, hire more staff and invest in our local economy. Our Buy Local Policy was implemented soon after we came to office and […]
Media release – Michael Ferguson, Minister for Finance, 31 July 2020
Further strengthening our Buy Local Policy to support Tasmanian businesses
The Tasmanian Liberal Government is committed to supporting Tasmanian businesses to thrive, hire more staff and invest in our local economy. Our Buy Local Policy was implemented soon after we came to office and now we’re strengthening it even further to create even more opportunities for Tasmanians.
This is more important now than ever, as we recover and rebuild a stronger Tasmania post COVID-19.
That’s why we are updating our Buy Local Policy, to ensure even more Tasmanian businesses can reap the benefits.
From July 31 2020, changes to the Tasmanian Government’s procurement framework will further emphasise the importance of buying locally.
An Economic and Social Benefits Test and associated statement will replace the Local Benefits Test and Local SME Industry Impact Statement. The new test will allow for greater focus on Tasmanian social and economic factors when government agencies evaluate competitive procurements.
The Economic and Social Benefits Test will be weighted at 25 per cent of the total procurement evaluation criteria – up from 20 per cent for the previous Local Benefits Test.
The Economic and Social Benefits Statement will ask suppliers to respond to questions, including whether the supplier is:
- A Tasmanian SME;
- Has a Tasmanian workforce;
- Will engage Tasmanian businesses as sub-contractors;
- Has invested in the Tasmanian community; and
- Will source Tasmanian produced goods and services.
To further increase opportunities for Tasmanian businesses, the Government is also raising the low value procurement threshold from $50,000 to $100,000.
Agencies have discretion to choose the method of approaching the market for procurements below this threshold, including directly approaching a supplier. For low value procurements, agencies should approach Tasmanian businesses first, where there is local capacity, capability and value for money in local offerings.
The updated Buy Local Policy and TIs will be available at www.purchasing.tas.gov.au
Media release – Tasmanian Small Business Council. 31 July 2020
Local purchase policy tweak a huge boost to Tasmanian Businesses
‘Today’s announcement by the Premier of a significant adjustment to the Tasmanian Government’s Buy Local Policy will provide a confidence and business boost to thousands of Tasmanian businesses,’ said Robert Mallett CEO of the Tasmanian Small Business Council.
‘In essence, Tasmanian small and medium businesses will get a 25% head start on mainland and international competition when tendering to supply Tasmanian Government contracts.
‘This will not mean a free kick to increase prices but the announcement will enable freight and distance pricing issues among others to be mitigated when tendering.
‘A tenderer will be required to demonstrate that the businesses is a Tasmanian small or medium enterprise, has a Tasmanian workforce, will engage Tasmanian businesses as sub-contractors, has invested in the Tasmanian community and will source Tasmanian produced goods and services.
‘In addition, the low value procurement threshold will be raised from $50,000 to $100,000 enabling purchasing officers to make rapid local decisions which will benefit small local businesses.
‘Crucial to the success of this policy tweak, which comes into effect today, will be instructions to all government purchasing officers that this is the new world for the next two years.
‘This decision is an insightful way to get Tasmania working again, and Tasmanian businesses to see a way forward, without a huge injection of grant funds and broad support.
‘The next steps will to see if the Minister for Local Government will provide a similar message to Tasmania’s 29 Local Governments to consider the same initiative.
Source: Tasmanian Times https://tasmaniantimes.com/2020/07/updated-buy-local-policy/#utm_source=rss&utm_medium=rss&utm_campaign=updated-buy-local-policy