Joint media release with the Prime Minister, the Hon. Malcolm Turnbull MP
Indigenous economic development is at the heart of the Coalition Government’s national agenda and a key plank of this agenda, the Indigenous Procurement Policy (IPP), has exceeded all expectations in its first year.
Implemented from 1 July, 2015, the IPP has resulted in contracts worth a total of $284.2 million being awarded to 493 Indigenous businesses across Australia. This 12-month result is a spectacular success compared to the failed results of previous years under Labor – almost 46 times the $6.2 million worth of contracts awarded to Indigenous businesses in 2012-13.
The IPP works because the Coalition Government understands how small business works.
We removed the cumbersome red tape of the former Government’s policies and replaced it with a simple requirement that 3 per cent of goods and services procured by Commonwealth agencies be from Indigenous businesses.
The first-year target of 256 contracts has been surpassed more than five times over with more than 1509 contracts being awarded to 493 Indigenous businesses in 2015-16.
More than half (56 per cent) of the total value of Indigenous business contracts went to the building, construction and maintenance sector.
What makes the IPP so remarkable is the breadth of goods and services delivered by Indigenous businesses under this policy. It includes everything from uniforms, to information and communications technology, to recruitment, legal and financial services.
During this week, we will be travelling around South Australia, meeting Indigenous business owners who have received contracts as part of the IPP or who might be interested in taking up this opportunity. These contracts will help South Australia’s Indigenous businesses and communities to build economic independence.
The IPP complements the $115 million Indigenous Entrepreneurs Package that the Coalition took to the election to support Indigenous entrepreneurs and small businesses.