Business across the state are benefitting from South Australian Government policies giving them first go at almost $4 billion worth of goods and services contracts let annually by the government.
Latest data from the State Procurement Board shows that in 2014-15, 90 per cent of the value of goods and services contracts were let to suppliers located in South Australia, up from 79% in 2013-14 and 51% in 2012-13.
Ensuring that local businesses get the opportunity to be involved are paying dividends in investment and jobs. Added to this are the growing levels of construction funded by the Commonwealth, but managed by the State Government.
An example of the projects built by South Australians for South Australians which were highlighted include:
- Torrens River to Torrens Road
- O-Bahn City Access Project
- Darlington Upgrade
The South Australian Government, through the Industry Participation Policy requires the submission of industry participation plans with tender documents for government projects over the value of $4 million in metropolitan Adelaide and $1 million in regional South Australia.
Data from the State Procurement Board shows the success of the Industry Participation Advocate, which oversees the policy, with 90% of the value of goods and services contracts having been let to suppliers located in South Australia in 2014-15. This compares to 79% in 2013-14 and 51% in the 2012-.13 year.
For the period ending April 2016, major construction projects above $50 million had estimated expenditure of work packages in South Australia of $637 million, from a total of $698 million. This is an outstanding result and means 91% was retained spending in the State from major construction procurements in the supply-chain, benefitting locally based businesses.
Quotes attributable to Minister for Small Business Martin-Hamilton Smith
As I told the local businesses at the recent Meet the Buyer event, over the next three years the budgeted capital works spend of the State Government is between $1.327 and $1.516 billion per annum.
This represents all manner of projects in size and scale, including major projects, water infrastructure, housing, road upgrades, roundabouts, prison upgrades, school infrastructure and hospital upgrades.
It is this diversity of capital works that can ensure a vibrant civil construction sector. On top of this, the $985 million Northern Connector will be about delivering maximum employment, economic development and use of suppliers from northern Adelaide and the State.
For housing contractors and suppliers there is also the $208 million package to build 1,000 homes for the South Australian Housing Trust. This is directed at stimulating the housing sector and suppliers of all kinds of fixtures and fittings that can be sourced or manufactured in the State.
Rarely has there been a time with so many opportunities for businesses in the construction sector in this State. This is the Weatherill Government backing local business and – achieving results for those businesses and South Australian workers.