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Queensland Industry Participation Policy Bill 2010
Queensland Industry Participation Policy
Bill 2010
Explanatory Notes
General Outline
Policy Objectives
The objective of the Queensland Industry Participation Policy Bill 2010 is
to maximise economic, employment, industry development and social
benefits to Queensland of State Government-funded procurement by
ensuring the high-level principle of developing, maintaining and
implementing an industry participation policy is put into practice by all
Queensland Governments.
Reasons for the Bill
Participation by Queensland suppliers of goods and services in activity
generated by State Government-funded procurement contributes
substantially to employment and business growth. This local industry
participation not only helps create and retain jobs; it drives technology
transfer, research and development, innovation and improved productivity
as suppliers pursue best practice. It also provides access for Queensland
Government project managers and contractors to the widest range of
capable local industry, providing more options for achieving value for
money.
Legislating to require the development of a local industry policy will
ensure that the principles of securing economic, employment and social
benefits through State Government-funded major project procurement are
put into practice by successive Queensland Governments.
Achievement of the Objectives
To achieve the policy objectives, the Queensland Industry Participation
Policy Bill 2010 provides for the development and implementation of a
Queensland industry participation policy by all Queensland Governments,
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Queensland Industry Participation Policy Bill 2010
and requires annual reports to Parliament on the policy's implementation
and government agencies' and Government Owned Corporations' (GOCs)
compliance with it.
It is not the intention of this Bill to capture projects, developments,
procurements and other initiatives wholly funded by local governments.
The contracting and procurement activities of local governments are
regulated by the Local Government Act 2009. Under this Act, local
governments are required to have regard to five contracting/procurement
principles, one of which is the development of competitive local business
and industry.
It is the intention of the Bill, however, to make provision to capture State
capital grants to local government, community organisations and private
sector companies, as occurs under the existing Local Industry Policy for
projects that meet its criteria. A large number of local government roads
projects are funded through grants, and some large private sector projects
may also be partially funded through grants.
Alternatives to the Bill
The legislative approach is considered the most appropriate and only
approach in terms of the institution of Parliament providing for a lasting
commitment to developing and implementing a policy to optimise
economic, employment, industry development and social benefits to
Queensland from State Government-funded procurement. Legislation
provides for policy embodying these principles in perpetuity, signals a
strong commitment to the Queensland public and industry, and increases
transparency and accountability through Parliamentary reports.
Estimated Cost for Government Implementation
The funding arrangements and allocations for the implementation of the
Queensland Government's existing Local Industry Policy - a fair go for
local industry, January 2008, are not affected by the Bill. The
requirements of the Bill as they relate to the implementation arrangements
adopted by the current Queensland Government are to be met through
existing resources.
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Queensland Industry Participation Policy Bill 2010
Consistency with Fundamental Legislative Principles
The Bill is consistent with fundamental legislative principles. It is not the
intention of the Bill to create rights and liberties, nor to provide for
offences, powers of prosecution or civil actions to be taken under the Bill,
nor does it provide for the compulsory acquisition of property.
Consultation
The Department of Employment, Economic Development and Innovation
consulted widely, offered and carried out briefings with interested parties
across Queensland, including industry and regional development
organisations, trade unions, departments and GOCs. There is general
support for the Bill.
Legislation of the Commonwealth or another State
Local industry participation is a central component of economic
development policies and legislation in all Australian jurisdictions,
including the Commonwealth.
The Council of Australian Governments (COAG) committed to the
principles of local industry involvement in government-funded major
project procurement in 2001 by endorsing the Australian Industry
Participation National Framework (AIPF). The AIPF's central aim is to
provide for full, fair and reasonable opportunity for Australian industries to
participate in significant government-funded public and private sector
project activity.
The Victorian Government signalled the prime importance of local industry
participation to Victoria's economic development with the introduction of
the Victorian Industry Participation Policy Act 2003.
The Queensland Industry Participation Policy Bill 2010 gives expression to
the COAG principles under the AIPF and complements and is consistent
with the Victorian legislative approach.
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Queensland Industry Participation Policy Bill 2010
Notes on Provisions
Part 1 Preliminary
Clause 1 provides for the short title of the Act as the Queensland Industry
Participation Policy Act 2010.
Clause 2 provides that the Act will commence on a day to be fixed by
proclamation.
Clause 3 makes provision that the Act binds all persons, including the
State. It also provides that nothing in the Act makes the State liable to be
prosecuted for an offence.
Clause 4 provides that contravention of the Act does not create civil cause
of action.
Clause 5 provides for a Dictionary in the Schedule which defines words
used in the Act, in particular the meaning of `agency', `GOC' and `local
industry'. The meaning of `agency' outlines the intention of the Act that
the local industry policy to be made under clause 6 should encompass
developments, procurements and other initiatives undertaken or funded
(whether wholly or partially) by the State of Queensland through
`agencies' meaning all departments, all statutory bodies and all special
purpose vehicles; and all `GOCs', including their subsidiaries.
The definition of `special purpose vehicle' provides for those companies
established by the State under the Corporations Act to assist in delivering
infrastructure across the state, other than a GOC.
As the State is a Party to the Australia and New Zealand Procurement
Agreement, the meaning of `local industry' is intended to be consistent
with that Agreement. The Bill at clause 9(a) also provides that the local
industry policy must be consistent with other obligations of the State under
any conventions, treaties or other international agreements to which the
Commonwealth is a party.
This clause also provides that `shareholding Ministers' are the
shareholding Ministers of a GOC as set out in section 78 of the
Government Owned Corporations Act 1993.
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Queensland Industry Participation Policy Bill 2010
Part 2 Local industry policy
Clause 6 gives practical expression to the policy objectives of the Act by
ensuring the high-level principle of developing, maintaining and
implementing an industry participation policy relating to State
Government-funded procurement is put into practice. It therefore provides
for all future Queensland Governments to develop and implement a
Queensland industry participation policy, to be called `the local industry
policy', by requiring the Minister responsible for administering the Act to
develop and adopt a policy (clause 6(1)) for projects, developments,
procurements and other initiatives undertaken or funded (whether wholly
or partially) by the State of Queensland.
While clause 6(1) is broad, it is the intention that the Minister of the day
would exercise discretion on which activity might be captured by the local
industry policy and what project value thresholds might apply to such
activity in order to efficiently and effectively achieve the Bill's policy
objectives to maximise economic, employment, industry development and
social benefits of State Government-funded procurement under this clause.
It is not the intention of this Bill to capture projects, developments,
procurements and other initiatives wholly funded by local governments.
The contracting and procurement activities of local governments are
regulated by the Local Government Act 2009. The Bill does, however,
allow State Government capital grants to local government, community
organisations and private sector companies to be included under a local
industry policy.
In this regard, clause 6(2) provides that guidelines explaining the
application and procedures to be followed in complying with the policy
may be developed by the Minister. The detail of a policy and its
application are therefore matters for the Minister of the day.
Clause 7 sets out high-level objectives that must be taken into account by
the Minister in developing the local industry policy in order to achieve the
overarching policy objective of maximising the economic, employment and
social benefits to the State of State Government-funded procurement.
Clause 7(a) specifically provides for the recognition of employment and
business growth in maximising the overall economic, employment and
social benefits to Queensland.
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Queensland Industry Participation Policy Bill 2010
Clause 7(b) relates to the potential competition benefits for agencies and
GOCs from a local industry policy which provides access to a wider range
of potential capable, competitive suppliers that can deliver value for money.
Rural and regional Queensland currently makes a significant contribution
to employment and the Queensland economy. Clause 7(c) requires the
Minister to have regard to the objective of supporting the development of
regional and rural Queensland from the government-funded activities.
Clauses 7(d), (e) and (f) list the industry and business development
objectives in relation to local industry in Queensland to which the Minister
must have regard in developing a local industry policy, and highlight the
role of innovation in achieving the Bill's overarching objectives.
Clause 8 provides that the local industry policy must be consistent with
accountability principles relating to public expenditure and the principle of
minimising the administrative burden on government agencies and GOCs
in complying with the policy in its implementation and reporting of
outcomes.
Clause 9 provides for the local industry policy developed by the Minister to
be consistent with the State's obligations under any conventions, treaties or
other international agreements to which the Commonwealth is a party
(clause 9(a)), for example free trade agreements.
Clause 9(b) provides for consistency with other legislative requirements
relating to government procurement, including the Acts referenced
specifically in clause 9(b)(i), (ii) and (iii).
Clause 10 provides for consultation in developing and reviewing local
industry policy with agencies and GOC's. It also provides for consultation
with industry organisations and trade unions (clause 10(1)(c)), and with
other entities as the Minister considers appropriate (clause 10(1)(d)). It is
the intention that clause 10(1)(d) could also include consultation with
members of the public if the Minister of the day considered it appropriate.
Clause 10(2) provides that consultation with agencies must be with the
Minister of the agency, and shareholding Ministers for GOCs.
Clause 11 provides for agencies and GOCs to comply with the local
industry policy made by the Minister under clause 6. GOCs are significant
purchasers of goods and services with the potential for significant impacts
on employment and economic outcomes, particularly in regional
Queensland. It is the policy intention therefore that the local industry
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Queensland Industry Participation Policy Bill 2010
policy should apply to GOCs. However, it is appropriate for the Bill to
recognise the role of shareholding Ministers and the processes under
section 114 of the Government Owned Corporations Act 1993 (GOC Act)
for the application of government policies to GOCs. The Bill therefore
provides for the local industry policy to apply to GOCs where shareholding
Ministers give notification to the boards of GOCs following the
consultation process as required under section 114 of the GOC Act.
Part 3 Publication, and reporting on
implementation, of the local
industry policy
Clause 12 ensures that the local industry policy developed under clause 6 is
available electronically on the website of the department responsible for
administering the Act (clause 12(a)) and for public inspection at the offices
of the same department for public inspection free of charge (clause 12(b))
during normal business hours. It is the intention that the department
responsible for administering the Act will be the Department of
Employment, Economic Development and Innovation (DEEDI) and an
editor's note is provided indicating DEEDI's website address.
Clause 13 makes provision for Parliamentary and public scrutiny of
outcomes from the implementation of the local industry policy developed
by the Minister. It requires the Minister to prepare and table an annual
report in Parliament. The form of the report and the nature of the
information in it are matters for the Minister. Such a reporting mechanism
allows the Queensland Government to profile the real impacts and
successes of the policy and also to highlight non-compliance where it
occurs.
Clause 14(1) gives the Minister responsible for administering the Act the
right to make a request in writing for information from agencies required to
make the report to Parliament under clause 13. Clause 14(2) provides for
the Minister to stipulate a reasonable period of time for an agency to
provide the information. Clause 14(3) provides that the agency must
comply with the request unless it would break a law in meeting the request.
Clause 15 gives the Minister responsible for administering the Act the right
to make a request in writing for information from GOCs and outlines the
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Queensland Industry Participation Policy Bill 2010
process for the same Minister to obtain information from a GOC in order to
make a report to Parliament under clause 13.
Clause 15 recognises also the role of shareholding Ministers under the
GOC Act in relation to obtaining information from a GOC in that the
Minister responsible for administering the Act must make a written request
through shareholding Ministers (clause 15(1)) of a GOC and provide a
reasonable period for the shareholding Ministers to comply (clause 15(2)).
Clause 15 then provides that shareholding Ministers must obtain the
information by written notice to a GOC (clause 15(3)), provide a
reasonable period for the GOC to comply (clause 15(4)), and that a GOC
must provide the information to the shareholding Ministers within that
period unless it would break a law to meet the request (clause 15(5)).
Clause 15(6) then provides that the shareholding Ministers must provide
the information to the Minister responsible for administering the Act
within the period provided by that Minister under clause 15(2).
It is the intention that in order for the Minister to make a report under
clause 13, the necessary administrative arrangements would be put in place
by the department responsible for administering the Act to obtain the
information necessary from agencies and GOCs for the Minister. The
Minister would then only be required to exercise the right under clause 14
or clause 15 if those administrative arrangements are not successful in
obtaining the information the Minister requires to make a report under
clause 13.
Part 4 Savings provision
Clause 16 provides for the Queensland Government's existing Local
Industry Policy - a fair go for local industry to be taken as the local
industry policy for the purposes of clause 6 on commencement of the Act.
There is a large number of projects subject to the existing Local Industry
Policy. This clause provides for continuity and certainty for public and
private sector proponents needing to comply with the existing Local
Industry Policy without disruption, and will readily enable the first report
to Parliament under clause 13.
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© State of Queensland 2010