Question regarding the awarding of a landscaping contract for the Esperance Health Campus to a Perth company instead of a local business, despite 'Buy Local' policies. The answer explains the complexities of applying the policy due to interstate bids and contractual obligations.

AnsweredQoN 4425Legislative Council
Asked
11 October 2016
Portfolio
Finance

QuestionView source ↗

I refer to question on notice No. 4154, asked to the Minister for Housing representing the Minister for Regional Development on 21 June 2016 regarding the contract for landscaping at the Esperance Health Campus, and I ask: (a) why did Building Management and Works (BMW) agree to this contract for a Perth company and not a local business when all financial agreements governing the use of Royalties for Regions funds contain a clause that requires the agency to comply with the State's Buy Local Policy and Building Local Industry Policy when purchasing goods or services or works for the project; (b) why did BMW agree to this contract for a Perth company when a local company was capable of supplying the product and had applied for the contract; (c) will the Minister table the contract entered into with the Perth company; (d) if no to (c), why not; and (e) which Minister(s) signs off on the contract?

AnswerView source ↗

Answered
15 November 2016
Responded by
Attorney General representing the Minister for Finance
Response time
35 days
(a) As with all regional projects, the Buy Local Policy was included in the tender documents for the main Esperance Health Campus contract. A bid received from the Eastern States meant these provisions could not be applied due to terms in the Australia-New Zealand Government Procurement Agreement .
(b) The Department of Finance’s Building Management and Works’ (BMW) is not a party to the landscaping contract. BMW’s contractual obligations only exist with the head contractor and not with subcontractors and suppliers. BMW is advised that a local supplier was approached by the subcontractor to supply 3,436 plants and only 270 of these plants could be provided, with the remainder having to be sourced elsewhere.
(c) No.
(d) The Minister for Finance is not a party to the landscaping contract.
(e) The contract with the Perth company is between two private entities and is not subject to ministerial sign-off.

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