Time and time again, the announcement comes out that an interstate firm has won the tender to construct public infrastructure or review government services. Time and time again, South Australian businesses wonder what they did wrong to lose out to an interstate or international firm.
The South Australian Business Chamber Chief Executive Officer, Martin Haese, says that obtaining optimum value for money and keeping South Australian businesses competitive in the procurement process are simply different sides of the same coin.
“As part of our Charter22 pre-election recommendations, the South Australian Business Chamber called for greater transparency in the public procurement process. We are pleased that the current State Government has responded with a new South Australian Government Procurement Framework that considers achieving value for money and maximising the opportunity for South Australian business participation.
“While Government agencies here in South Australia do publish their procurement plans, the job is not yet done. We need to make sure that South Australian businesses can be ready for these opportunities.
“Currently, the procurement website lists projects through until October 2023. This is a good start, but the next Government of South Australia must push agencies to look further ahead. By publishing longer-term procurement plans, the State Government will provide the South Australian business community with greater certainty to invest in and grow their operations to meet the needs of upcoming opportunities.
“The South Australian Business Chamber notes that the South Australian Industry Advocate has brought these issues to the table already. For the next State Government, there is a tremendous opportunity to shift the attitude of the South Australian public service. It is not just about squeezing the tender down to lowest cost, especially with South Australia’s proven sustainability, renewable energy and circular economy credentials.
“We should expect our public service to be considering first-cost vs whole-of-life costs for procurement. Often, you can offset additional upfront capital costs on water and energy requirements within a few short years through significant reductions in operating expenses.
“We’re speaking out on behalf of our members because future work could be compromised if they publicly raise these issues themselves. We want to put a spotlight on this issue in the
lead-up to the State Election. Not because we want South Australian businesses to have any special favours, but because there is such an economic benefit for South Australia to keep the work local.”
“South Australians need good secure jobs, and these can come from large public infrastructure projects, including roads, hospitals, schools and other public buildings. These projects give businesses the confidence to train their staff with the necessary long-term skills. By training South Australians and ensuring they have these exciting projects to tackle, we keep them here in the State too.
“Businesses need to know what is in the pipeline. This forward-thinking is what we are calling for today from the next Government of South Australia.”
The South Australian Business Chamber commends the State Government for recently taking decisive steps toward ensuring that more South Australian businesses are on the receiving end of state government procurement. However, given that it is often local taxes that are financing these local projects, the South Australian Business Chamber encourages for more to be done.
