WA Introduces Bill To Encourage Local Industry Participation In Government Contracts

Tuesday 7 November 2017 @ 11.07 a.m. | Legal Research | Trade & Commerce

The Western Australian Jobs Bill 2017 (the Bill) was introduced into the WA House of Assembly on 6 September 2017 by the Minister for State Development, Jobs and Trade, the Hon Mark McGowan MLA.  On 19 October 2017 the Bill passed the House of Assembly without amendments.

The Bill was introduced into the Legislative Council on 31 October 2017, where it is currently awaiting further debate.

Background to the Bill

The Bill’s Explanatory Memorandum (EM) indicates that the purpose of the Bill:

“…is to use the State Government procurement process to enhance local industry participation in the supply of goods and services to or for agencies or the State, with a particular focus on benefits to small and medium enterprises. This Bill provides for the development of a Western Australian Industry Participation Strategy [WAIPS] …”

At the time, Minister McGowan described the Bill as a “…watershed moment" and said "our jobs bill will ensure that my government and every WA government that follows will always put WA jobs first".

The WA Member for Kalgoorlie (who supported the Bill), Mr Kyran O’Donnell MLA, was quoted in the media as saying that he wished a clause had been included in the Bill which stated “… 50 per cent of the project must have West Australian workers on it unless the minister deemed otherwise”.

Purpose of the Bill

Concerns have been expressed about outside contractors working on local projects but not hiring local people, a situation which is hoped will be rectified by the introduction of this Bill. Clause 5 of the Bill’s EM outlines some of the key objectives of the WAIPS:

“ … The WAIPS will be a written strategy about the participation by local industry in activities for or in connection with particular supplies.”

The Bill’s Second Reading Speech in the House of Assembly [Mr McGowan] also indicates its purpose:

“…This bill, in its implementation, will support small and medium businesses to participate in the supply of goods and services to the government, creating more local jobs for local workers. Government’s procurement of goods and services can play an important role in supporting the development of local industry …”

The Key Objectives

The strategy behind the Bill, outlined in the Bill’s Second Reading Speech in the House of Assembly, outlines a number of its key objectives:

“…promoting the diversification of the economy; raising awareness of local industry capability; encouraging innovation; promoting increased apprenticeship, training and job opportunities; and, lastly, giving local industry a full, fair and reasonable opportunity to compete against foreign suppliers. Small and medium enterprises will be a particular focus of the strategy. The bill requires the strategy to be consistent with section 92 of the commonwealth Constitution. The implementation of the strategy will also need to be cognisant of the state’s obligations under treaties and other international agreements to which the commonwealth or the state is a party. The bill also requires the strategy to take into account and be consistent with value for money and probity and accountability principles …”

Mr O’Donnell also commented that he had in the past, been approached by large Perth-based or interstate companies to tender for work in his area of Kalgoorlie-Boulder, but either he was not contacted again, or if the tender was successful, the job would be completed with the company’s own staff and then they would leave the area, resulting in local tradespeople being denied employment.

TimeBase is an independent, privately owned Australian legal publisher specialising in the online delivery of accurate, comprehensive and innovative legislation research tools including LawOne and unique Point-in-Time Products. Nothing on this website should be construed as legal advice and does not substitute for the advice of competent legal counsel.

Sources:

Labor State Conference: McGowan announces 'jobs bill' to boost local businesses – abc.net.au

Western Australian Jobs Bill 2017 (WA) - Bill and supporting documentation available from TimeBase LawOne Service.

Related Articles: