Small businesses get larger slice of government procurement

Image Credit: Queensland Government
Media Release

Queensland’s small to medium businesses are reaping the rewards of the Palaszczuk Government’s new procurement targets.

Procurement Minister Mick de Brenni said under the Unite & Recover plan, government agencies were required to spend at least 25 per cent of their procurement dollars with Queensland small to medium size businesses.

“We not only met that target – we smashed it,” Mr de Brenni said.

“We achieved 28.53 per cent in the last six months of 2020, putting $2.67 billion back into the pockets of Queensland small businesses.

“That’s more than 28 cents in every dollar, putting us well on track to meet the next milestone of 30 per cent in 2022.”

The increase has been driven by a higher investment across Building, Construction and Maintenance; Transport Infrastructure and Services and Information; and Communication Technology.

Minister for Small Business Di Farmer said the procurement targets were just in time to help small businesses to get through the worst of COVID-19.

“That money certainly helped keep smaller operators open for business and Queenslanders working,” Ms Farmer said.

“It’s just so important our small businesses get their fair share of government procurement because that drives increased investment and employment right here in Queensland.

“I heard loud and clear on our statewide Small Business Roadshow that small businesses welcome our procurement policy.

“They’re also keen for us to do more to help them understand and participate in government tender processes.

“We are always looking for ways to make it easier to do business and we have funded CCIQ officers across our state to assist small businesses with government procurement processes.

“We will also be working alongside small business owners to increase the assistance and information available.

“Coupled with our On Time Payment policy, the Palaszczuk Labor Government is continually improving the way we work with small business.”

One business which benefited from the Palaszczuk Government’s procurement policies is Gold Coast family-owned XO2.

XO2 has been going since 1968, employing 15 Queenslanders to supply eco-friendly cleaning, hygiene and washroom products.

XO2 CEO David Blamire said the Buy Queensland approach had really helped his business.

“It is a program that really helps at the local level, it’s really helpful to us,” he said

“We believe in local manufacture; we believe in Australian made. We believe in jobs and we believe in profits here in our region.”

Mr de Brenni said the government has changed the way it does business to make it even easier for SMEs to work with government.

“We match buyers with suppliers through the COVID-10 Supplier Portal and the COVID-19 Procurement Team assists government agencies,” he said.

“Investing Queensland taxpayers’ money back into Queensland and keeping Queenslanders in jobs will always be our priority.”