Wide Bay Burnett businesses big winners from revised Industry Policy
Published Thursday, 15 November, 2007 at 10:05 AM
Minister for Tourism, Regional Development and Industry
The Honourable Desley Boyle
Wide Bay Burnett firms will now have a better chance to win valuable Queensland Government contracts under changes to Queensland’s Local Industry Policy.
Regional Development Minister Desley Boyle announced the changes which will be operational in January and are specifically designed to benefit regional businesses.
Ms Boyle said: “Under the Local Industry Policy, State Government departments and Government owned corporations must now give competitive local suppliers the opportunity to tender on major projects.
Changes to the policy, recently passed by cabinet, include:
• Lowering the threshold for infrastructure projects in regional and rural areas from $5 million to $2.5 million
• Extending the policy to include capital asset purchases valued at more than $5 million
• Promoting the use of local design services where they are competitive
The changes will also apply to Government owned corporations operating in Wide Bay Burnett. They too will encourage local suppliers to tender for infrastructure projects of $2.5 million or more in value.
“As the new Regional Development Minister this is the first structural change I’ve pushed through to benefit business in the regions.
“The bottom line is that lowering the threshold will create more opportunities for small to medium sized regional businesses not only to bid for projects but also to expand and grow their capability.
“This means there will be firms that may not have even considered tendering in the past but will now get a chance,” Ms Boyle said.
“There are many infrastructure projects coming up across the state’s regions worth between $2.5 million and $5 million and there will now be a sharp focus on competitive regional firms.
“Projects such as the police station and watchhouse at Murgon, with an estimated value of $3.5 million and due to go to tender shortly, will now be captured by the Policy.
“With the lower threshold in place, Wide Bay firms will have a better chance of gaining business from projects of this kind.
“Ergon Energy is one Goc which has voluntarily and successfully led the way.
“Ergon worked with Cairns engineering firm Pollards for statewide supply of pole nails.
“Ergon awarded Pollards an initial one-year contract in September 2004 worth $2.8 million and more recently a three-year contract worth $10.5 million, ahead of an existing Victorian supplier.
“Pollards is now reorganizing its fabrication facility in Cairns and expanding its galvanizing capability in Townsville”
“I encourage regional and rural suppliers to keep a close eye on the Queensland Government’s Building Projects Industry Guide at www.build.qld.gov.au/ and the Queensland Government Market Place website at www.qgm.qld.gov.au/ .
“The Queensland Government will also help local businesses make the most of the opportunities by running ‘how to tender’ workshops through local State Development Centres.
“The Local Industry Policy was first launched seven years ago.
“We were the first State Government to introduce such a policy and it has now been copied by most other states,” Ms Boyle said.
“In those seven years local suppliers have won 1,354 packages valued at $2.65 billion, including $790 million in contracts secured by companies in Queensland’s regions.
“In 2006-07 alone, Queensland firms competed successfully for over $289 million of new business on major projects.
“There is no doubt that without the Local Industry Policy – and the cooperation between government, business and unions – much of this work would have been awarded interstate or offshore.”
Ms Boyle said the policy had helped bring about a major change of attitude.
“Project proponents are now willing to consider local suppliers breaking into their global supply chains and local industry has recognised the benefits of working cooperatively to increase the size and types of projects they are able to bid on,” she said.
Ends
Media contact: 3224 2004
15 November 2007
Regional Development Minister Desley Boyle announced the changes which will be operational in January and are specifically designed to benefit regional businesses.
Ms Boyle said: “Under the Local Industry Policy, State Government departments and Government owned corporations must now give competitive local suppliers the opportunity to tender on major projects.
Changes to the policy, recently passed by cabinet, include:
• Lowering the threshold for infrastructure projects in regional and rural areas from $5 million to $2.5 million
• Extending the policy to include capital asset purchases valued at more than $5 million
• Promoting the use of local design services where they are competitive
The changes will also apply to Government owned corporations operating in Wide Bay Burnett. They too will encourage local suppliers to tender for infrastructure projects of $2.5 million or more in value.
“As the new Regional Development Minister this is the first structural change I’ve pushed through to benefit business in the regions.
“The bottom line is that lowering the threshold will create more opportunities for small to medium sized regional businesses not only to bid for projects but also to expand and grow their capability.
“This means there will be firms that may not have even considered tendering in the past but will now get a chance,” Ms Boyle said.
“There are many infrastructure projects coming up across the state’s regions worth between $2.5 million and $5 million and there will now be a sharp focus on competitive regional firms.
“Projects such as the police station and watchhouse at Murgon, with an estimated value of $3.5 million and due to go to tender shortly, will now be captured by the Policy.
“With the lower threshold in place, Wide Bay firms will have a better chance of gaining business from projects of this kind.
“Ergon Energy is one Goc which has voluntarily and successfully led the way.
“Ergon worked with Cairns engineering firm Pollards for statewide supply of pole nails.
“Ergon awarded Pollards an initial one-year contract in September 2004 worth $2.8 million and more recently a three-year contract worth $10.5 million, ahead of an existing Victorian supplier.
“Pollards is now reorganizing its fabrication facility in Cairns and expanding its galvanizing capability in Townsville”
“I encourage regional and rural suppliers to keep a close eye on the Queensland Government’s Building Projects Industry Guide at www.build.qld.gov.au/ and the Queensland Government Market Place website at www.qgm.qld.gov.au/ .
“The Queensland Government will also help local businesses make the most of the opportunities by running ‘how to tender’ workshops through local State Development Centres.
“The Local Industry Policy was first launched seven years ago.
“We were the first State Government to introduce such a policy and it has now been copied by most other states,” Ms Boyle said.
“In those seven years local suppliers have won 1,354 packages valued at $2.65 billion, including $790 million in contracts secured by companies in Queensland’s regions.
“In 2006-07 alone, Queensland firms competed successfully for over $289 million of new business on major projects.
“There is no doubt that without the Local Industry Policy – and the cooperation between government, business and unions – much of this work would have been awarded interstate or offshore.”
Ms Boyle said the policy had helped bring about a major change of attitude.
“Project proponents are now willing to consider local suppliers breaking into their global supply chains and local industry has recognised the benefits of working cooperatively to increase the size and types of projects they are able to bid on,” she said.
Ends
Media contact: 3224 2004
15 November 2007