Government procurement to support sovereign security

A NEW Parliamentary inquiry report highlights that government procurement has an important part to play in supporting the development of Australia’s sovereign industry capability.

John Alexander OAM MP, Chair of the House of Representatives Standing Committee on Infrastructure, Transport and Cities, today tabled the report for the committee’s inquiry into procurement practices for government-funded infrastructure.

"Since starting the inquiry last year, these issues have become even more significant and pressing," Mr Alexander said. "Sovereign security has in recent times, become an important issue for our country, as tensions between great power competitors come into sharp focus, with real concern for the impact this has on our exports and the flow-on effects to our economy.

"Over many decades, sovereign security has been compromised due to our expedient choices in seeking the lowest price over best value for our procurement. This has diminished our capacity to deliver fit-for-purpose infrastructure and a sustainable industry," Mr Alexander said.

"The lack of long-term planning has resulted in a piecemeal, ad hoc and reactive delivery process, which thwarts the development of efficiencies in the construction industry that could be attained if there was a steady pipeline of projects available. Industry needs the confidence to gear up in line with the opportunities available, which would build up industry capacity and productivity.

"‘In the 88 percent male dominated construction workforce, more needs to be done to address the cultural practices and norms within the construction industry that disincentivise women from entering or staying."

The committee makes eight recommendations aimed at:

• improving the planning, procurement and delivery of government-funded infrastructure projects;
• improving collaboration between the tiers of government;
• enhancing opportunities for Tier 2 and 3 companies and Australian businesses to participate in the significant Australian infrastructure pipeline;
• improving technology uptake by both governments and industry; and
• improving the construction industry’s capacity and sovereign capability.

The report is available on the committee’s website.

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