Coalition procurement policy supercharges Indigenous businesses

The Coalition Government’s Indigenous Procurement Policy (IPP) has been such a success in its first year that we are immediately moving to introduce the 2020 target.

Minister for Indigenous Affairs, Nigel Scullion, announced the new target at a networking event for Indigenous businesses and Government purchasers in the Australian Parliament today.

The original target set for contracts in 2015-16 was 0.5 per cent of Commonwealth domestic contracts. This acknowledged the very low base, given the Commonwealth procured only
$6.2 million from Indigenous businesses in 2012-13.

“The IPP has been a success because the Coalition understands how small business works and the policies needed to back them,” Minister Scullion said.

“I am pleased to say that in just our first year we have far surpassed the targets. Under the Coalition’s new procurement policy, the Commonwealth has awarded more than 1500 direct and indirect contracts to almost 500 Indigenous businesses worth a total of more than $284 million.

“This is almost 46 times the value of Indigenous contracts awarded by the Commonwealth in 2012-13.

“Given this extraordinary success, we will immediately bring forward to this financial year our 2020 target to award 3 per cent of contracts to Indigenous businesses – nearly three years ahead of schedule.

“This achievement shows the wealth of innovative, entrepreneurial Indigenous businesses ready to deliver goods and services all over Australia and the IPP’s ability to change long-standing government purchasing behaviour.

“Although more than half (56 per cent) of the total value of Indigenous business contracts were awarded in the building, construction and maintenance sector, what makes the IPP so remarkable is the range of businesses that have successfully tendered for work under this policy.

“These include businesses that produce information and communications technology products as well as service providers in the recruitment and legal and financial industries.

“Despite our success, the Commonwealth cannot do all the heavy lifting. Through the Council of Australian Governments we are continuing to work with the states and territories to get them to introduce their own Indigenous procurement policies and I call them to redouble these efforts.”