❓ Mr. Watson questions the awarding of regional development contracts to Perth-based companies over local Albany businesses. The Minister acknowledges concerns and is reviewing the Buy Local policy with regional chambers of commerce.
AnsweredQoN 706Legislative Assembly
QuestionView source ↗
ALBANY REGION EDUCATION PROJECTS — BUY
LOCAL POLICY
706. Mr P.B. WATSON to the Minister for Regional
Development:
I refer to the awarding of multimillion-dollar tenders under
royalties for regions to Perth-based companies for work carried out on Denmark
High School, Katanning Senior High School and the University of Western
Australia's Albany Science Centre.
(1) Why did
local Albany companies with competitive tenders such as Wauters Enterprises
miss out on these contracts?
(2) What steps
has the minister taken to investigate the awarding of these and other contracts
to Perth-based companies?
(3) Will the
minister immediately seek another review of the Buy Local policy to ensure
regional businesses are getting the benefits of royalties for regions projects;
and, if not, why not?
LOCAL POLICY
706. Mr P.B. WATSON to the Minister for Regional
Development:
I refer to the awarding of multimillion-dollar tenders under
royalties for regions to Perth-based companies for work carried out on Denmark
High School, Katanning Senior High School and the University of Western
Australia's Albany Science Centre.
(1) Why did
local Albany companies with competitive tenders such as Wauters Enterprises
miss out on these contracts?
(2) What steps
has the minister taken to investigate the awarding of these and other contracts
to Perth-based companies?
(3) Will the
minister immediately seek another review of the Buy Local policy to ensure
regional businesses are getting the benefits of royalties for regions projects;
and, if not, why not?
AnswerView source ↗
(1)–(3)
I thank the member for Albany for the question. He rightly refers to the fact
that there has been an absolutely unprecedented program of infrastructure
development and growth in regional Western Australia, which to a degree has
helped drive the state's economy. In the past few weeks a couple of
builders and contractors have come forward and talked about the government's
Buy Local policy and how it does or does not work for them. These are important
considerations. I acknowledge the member's focus on Buy Local. Along
with the members for Kalgoorlie, North West and Geraldton, he did some work for
the government on Buy Local. It is important that the government does all it
can to give local contractors the opportunity to get involved in major
government projects.
The member for Albany talked about
the Katanning Senior High School and Denmark High School contracts. I did some
work on this when the concerns were raised. BGC won both of those contracts.
BGC Construction has a south west division. In tendering for government
contracts, BGC Construction south west division is eligible for the Buy Local
criteria. By establishing a regional presence, BGC becomes eligible for that
program. We want BGC to establish its south west division and bring its
expertise to the region. Rightly so, I would suggest, the next tier down
smaller contractors are concerned that they would lose the advantage of Buy
Local content when it happens. Last week I met with the regional chambers of
commerce and raised this matter with them. I asked them to discuss how the
government might look at their Buy Local policy to reflect that. Everyone would
like to see the local businesses supported but if BCC is prepared to move its
operations into the regions, I do not think we would oppose that. It would
employ people and give local apprentices a job.
Mr P.B. Watson :
No, they don't; they just put a little office in; that's all
they do.
Mr
B.J. GRYLLS : Again, member for Albany, that is the example you talked
about. That is what occurred in those circumstances. The member for Collie–Preston
spoke about the fishing structure—the artificial reef—that is
to be built in Bunbury and Busselton. It is a fantastic project. Again,
royalties for regions is providing the opportunity for fish to accumulate so
that the Minister for Health can catch them! That went out to requests for a
proposal. The proposal came back and, for members in the chamber, the reason
that contract was awarded to the Korean technology with the local concrete
manufacturer and local barge operator was because it put in a better proposal.
I am aware that the concrete contractor that won the contract is four or so
houses down from the other concrete contractor that was concerned about not
getting the project. There was a reason it was more expensive and that is
because —
Mr
M.P. Murray interjected.
The SPEAKER :
Member for Collie–Preston!
Mr
B.J. GRYLLS : The advice that came to me was that the structures of the
company that won the tender had twice as much concrete in them as the project
that did not win the tender. Obviously, if it has twice as much concrete, it
will cost more to produce. The Minister for Fisheries decided that the best
outcome to deliver the fish aggregation devices off the south west coast was to
go with that tender. I think 93 per cent of the content of that project was
local.
Mr P.B. Watson :
This is my question, minister.
Mr
B.J. GRYLLS : A Bunbury concreting company won the contract for the
concrete, and it is a Bunbury barge company.
Regarding the member for Albany's question about the
royalties for regions contract for the school building, BGC has a regional
south west division; therefore it was eligible. Like the member for Albany, I
am slightly concerned about how we are applying the government Buy Local
policy. I have asked the regional chambers of commerce, which all met in
Parliament last week, to come back to me as a matter of urgency on how they
think government should respond to a company such as BGC having a regional
subsidiary or regional presence and therefore being eligible to tender for
those government contracts. The Liberal–National government is
determined to do what it can to ensure that small businesses and contractors in
regional Western Australia and across the state share in the opportunities the
Liberal–National government has delivered them with the most
unprecedented capital works and expenditure program a Western Australian
government has ever delivered. That is what employs people; that is what
creates new jobs; and that is what is growing Western Australia into the
greatest place in the world.
I thank the member for Albany for the question. He rightly refers to the fact
that there has been an absolutely unprecedented program of infrastructure
development and growth in regional Western Australia, which to a degree has
helped drive the state's economy. In the past few weeks a couple of
builders and contractors have come forward and talked about the government's
Buy Local policy and how it does or does not work for them. These are important
considerations. I acknowledge the member's focus on Buy Local. Along
with the members for Kalgoorlie, North West and Geraldton, he did some work for
the government on Buy Local. It is important that the government does all it
can to give local contractors the opportunity to get involved in major
government projects.
The member for Albany talked about
the Katanning Senior High School and Denmark High School contracts. I did some
work on this when the concerns were raised. BGC won both of those contracts.
BGC Construction has a south west division. In tendering for government
contracts, BGC Construction south west division is eligible for the Buy Local
criteria. By establishing a regional presence, BGC becomes eligible for that
program. We want BGC to establish its south west division and bring its
expertise to the region. Rightly so, I would suggest, the next tier down
smaller contractors are concerned that they would lose the advantage of Buy
Local content when it happens. Last week I met with the regional chambers of
commerce and raised this matter with them. I asked them to discuss how the
government might look at their Buy Local policy to reflect that. Everyone would
like to see the local businesses supported but if BCC is prepared to move its
operations into the regions, I do not think we would oppose that. It would
employ people and give local apprentices a job.
Mr P.B. Watson :
No, they don't; they just put a little office in; that's all
they do.
Mr
B.J. GRYLLS : Again, member for Albany, that is the example you talked
about. That is what occurred in those circumstances. The member for Collie–Preston
spoke about the fishing structure—the artificial reef—that is
to be built in Bunbury and Busselton. It is a fantastic project. Again,
royalties for regions is providing the opportunity for fish to accumulate so
that the Minister for Health can catch them! That went out to requests for a
proposal. The proposal came back and, for members in the chamber, the reason
that contract was awarded to the Korean technology with the local concrete
manufacturer and local barge operator was because it put in a better proposal.
I am aware that the concrete contractor that won the contract is four or so
houses down from the other concrete contractor that was concerned about not
getting the project. There was a reason it was more expensive and that is
because —
Mr
M.P. Murray interjected.
The SPEAKER :
Member for Collie–Preston!
Mr
B.J. GRYLLS : The advice that came to me was that the structures of the
company that won the tender had twice as much concrete in them as the project
that did not win the tender. Obviously, if it has twice as much concrete, it
will cost more to produce. The Minister for Fisheries decided that the best
outcome to deliver the fish aggregation devices off the south west coast was to
go with that tender. I think 93 per cent of the content of that project was
local.
Mr P.B. Watson :
This is my question, minister.
Mr
B.J. GRYLLS : A Bunbury concreting company won the contract for the
concrete, and it is a Bunbury barge company.
Regarding the member for Albany's question about the
royalties for regions contract for the school building, BGC has a regional
south west division; therefore it was eligible. Like the member for Albany, I
am slightly concerned about how we are applying the government Buy Local
policy. I have asked the regional chambers of commerce, which all met in
Parliament last week, to come back to me as a matter of urgency on how they
think government should respond to a company such as BGC having a regional
subsidiary or regional presence and therefore being eligible to tender for
those government contracts. The Liberal–National government is
determined to do what it can to ensure that small businesses and contractors in
regional Western Australia and across the state share in the opportunities the
Liberal–National government has delivered them with the most
unprecedented capital works and expenditure program a Western Australian
government has ever delivered. That is what employs people; that is what
creates new jobs; and that is what is growing Western Australia into the
greatest place in the world.
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