LGP Forum: Council spend and its impact on the SA economy

Councils spend over $950 million each year on building and infrastructure projects and this figure excludes goods and services spending. There can be a significant flow-on benefit to the State and regional economies where the spend supports jobs based in South Australia.  

The role of the Industry Advocate was established as a Statutory Authority under the Industry Act 2017 in January 2018. One of the responsibilities for the Advocate is to promote the State’s Industry Participation Policy. A key aspect of the policy aims to ensure that there is a genuine economic contribution assessment considered as part of tender evaluation.

The Industry Advocate has recently been working with the local government sector in relation to the South Australian Industry Participation Policy and its importance to the sector. 

What is the South Australian Industry Participation Policy? 

The South Australian Industry Participation Policy establishes the framework for assessment of the economic contribution between rival tenders and grants within a broader value-for-money framework. 

On many occasions, cost and the allocation of risk are considered to be the primary drivers of procurement decisions and in doing so, simply creates a “race to the bottom” where other qualifications are not given due consideration. 

The Office of the Industry Advocate believes that:

  • value-for-money means considering a range of factors in making a procurement decision, and entails a shift away from price as the critical or major factor driving decision making;
  • from an economic perspective, value-for-money should include measures of broader benefit to the State, such as employment, investment and industry development and there must also be a broader measure of value for money analysis when spending is considered across the total expenditure of State and Local Government;
  • when there is an incentive to use competitive local businesses as part of government contracts, this builds local firms capability and capacity, which in turn, improves their chances in new markets.

Ian Nightingale, the Industry Advocate, has witnessed a significant change in the buying behaviour of agencies and principal contracts since the role was established.

“I have seen how Government expenditure can provide a huge boost for businesses and the community through the flow-on benefits of jobs and additional economic activity, particularly in regional areas when local suppliers and subcontractors are used”, Mr Nightingale said.

The Forum

Join us at our next Local Government Property, Planning and Procurement Forum to hear directly from the Industry Advocate, Ian Nightingale.

During this session, Mr Nightingale will provide attendees with a comprehensive overview of the South Australian Industry Participation Policy and its relevance for the Local Government sector. Mr Nightingale will be joined by Dean Littlefield, Chief Operating Officer of Fragile to Agile. Mr Littlefield will be discussing the benefits of aligning Desired Business Outcomes to a Council’s capability to achieve them and demonstrating an example of a Council’s Business Capability Model.  Further, he will demonstrate how a Current State Procurement Assessment can highlight the successful alignment (or otherwise) of a procurement strategy to outcomes achieved.

Morning tea will be provided and there will be opportunities for you to network with other Local Government employees. 

Our team of Local Government specialists will also be on hand to answer questions, talk to you about any legal issues you have, as well as provide updates on recent changes in the law. 

Details

Wednesday 5 September 2018
Registration from 8.45am, Seminar from 9.00am - 11.00am
Terrace Room, Adelaide Pavilion, Corner South Terrace and Peacock Road (map here)

This is a complimentary event but spots are limited. 

To register your attendance, please email Janelle Borlace by Friday 31 August 2018, by clicking here

Practice Area: Local Government

Head Office

5th Floor, 80 King William Street Adelaide, South Australia 5000
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