❓ Mr Watson raises concerns about BGC allegedly undercutting local Albany businesses in education projects, potentially leading to their failure. The Minister acknowledges the issue, highlighting the need to balance 'Buy Local' policies with value for taxpayer money.
AnsweredQoN 707Legislative Assembly
QuestionView source ↗
ALBANY
REGION EDUCATION PROJECTS — BUY LOCAL POLICY
707. Mr P.B. WATSON to the Minister for Regional
Development:
I have a supplementary question. The minister spoke about BGC
having a subsidiary in Bunbury, which is fair enough, but it is undercutting
everybody else.
The SPEAKER :
Member, I need to hear a question.
Mr P.B. WATSON : I
am asking the minister—what they do is undercut everybody else.
Several members interjected.
The SPEAKER : The
member for Albany does not need assistance from anyone. It is an opportunity to
ask a supplementary question, member for Albany.
Several members interjected.
Mr P.B. WATSON :
Thank you, Mr Speaker. I have a supplementary question. What happens now is the
company puts in a bid —
Mr B.J. Grylls : I
know the question; I can answer it.
Mr P.B. WATSON :
Yes; it put in the lowest bid and then it goes back to our subcontractors in
Albany and say, ''We've got a lower bid; you've got to
cut your costs'', and my local businesses are going to the wall.
REGION EDUCATION PROJECTS — BUY LOCAL POLICY
707. Mr P.B. WATSON to the Minister for Regional
Development:
I have a supplementary question. The minister spoke about BGC
having a subsidiary in Bunbury, which is fair enough, but it is undercutting
everybody else.
The SPEAKER :
Member, I need to hear a question.
Mr P.B. WATSON : I
am asking the minister—what they do is undercut everybody else.
Several members interjected.
The SPEAKER : The
member for Albany does not need assistance from anyone. It is an opportunity to
ask a supplementary question, member for Albany.
Several members interjected.
Mr P.B. WATSON :
Thank you, Mr Speaker. I have a supplementary question. What happens now is the
company puts in a bid —
Mr B.J. Grylls : I
know the question; I can answer it.
Mr P.B. WATSON :
Yes; it put in the lowest bid and then it goes back to our subcontractors in
Albany and say, ''We've got a lower bid; you've got to
cut your costs'', and my local businesses are going to the wall.
AnswerView source ↗
Local businesses have the opportunity to apply for a range of
tenders across all portfolios, such as an unprecedented house-building program,
an unprecedented sport and recreation upgrade program and an unprecedented
school-rebuilding program. This government does a lot of unprecedented stuff,
and that is probably why we have been successful. The notes provided to me,
member for Albany, indicate that even if the local preference was not applied
to BGC for this particular tender, it would still have won the contract. Its
tender was lower even with the local preference taken out. The member's
allegation is that BGC is essentially engaging in predatory pricing—undercutting
the market. That is an allegation at the moment. Government can take a look at
that but, remember, it is the member's constituents' taxes that
fund the government's capital works program and the government wants to
get the best possible value for money it can while having a Buy Local policy
that can support the small business people the member seeks to represent. I
think that some more work probably needs to be done on getting that balance
right. A re-elected Liberal—National government will do just that.
tenders across all portfolios, such as an unprecedented house-building program,
an unprecedented sport and recreation upgrade program and an unprecedented
school-rebuilding program. This government does a lot of unprecedented stuff,
and that is probably why we have been successful. The notes provided to me,
member for Albany, indicate that even if the local preference was not applied
to BGC for this particular tender, it would still have won the contract. Its
tender was lower even with the local preference taken out. The member's
allegation is that BGC is essentially engaging in predatory pricing—undercutting
the market. That is an allegation at the moment. Government can take a look at
that but, remember, it is the member's constituents' taxes that
fund the government's capital works program and the government wants to
get the best possible value for money it can while having a Buy Local policy
that can support the small business people the member seeks to represent. I
think that some more work probably needs to be done on getting that balance
right. A re-elected Liberal—National government will do just that.
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