Mark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | Hansard source

I thank Senator Furner for the question. One of the most important ways of driving up Indigenous employment is by driving Indigenous economic development. In particular, the government is supporting the growth of the Indigenous business sector. The Gillard government is doing this through significant reform of the procurement policy. In May this year, Senator Wong and I announced changes to the mandatory procurement procedures of the government. These changes provide an exemption to the mandatory procurement procedures for small and medium enterprises that are 50 per cent Indigenous owned. The Commonwealth agencies can now contract to these Indigenous companies without conducting a full tender process, while still delivering value for money. This change means increased opportunity and greater access to the government's procurement market for all Indigenous small and medium sized businesses. It also embeds into our procurement processes the Closing the Gap goal of halving the gap in Indigenous unemployment by providing an opportunity and avenues for Indigenous businesses to prosper.

The new policy complements the 1 July introduction of the Indigenous Opportunities policy. The policy is designed to drive Indigenous employment and supplier use within companies that tender for government contracts by requiring them to implement Indigenous employment and supplier use plans. This means that if a company wants to win a government contract worth over $5 million, or $6 million for construction, it must agree to implement actions that will drive Indigenous employment and Indigenous suppliers within its organisation. If that company wins the tender, they must apply these actions locally to where the contract applies. My department will work with them to ensure the implementation of the plans works at a local level. The company will then be required to report annually to government on the action it has taken. Companies that do not meet the actions or targets— (Time expired)