Australia should follow the United Kingdom’s lead and put in place a plan to source government-procured food from local suppliers and producers, says a leading Australian vegetable growers body.
UK Prime Minister David Cameron announced on Monday that as of 2017, the country’s central government will, where possible, buy fresh, locally sourced food, under a new Plan for Public Procurement.
“The UK has taken an important step by committing to procure goods from local sources, which will without doubt benefit thousands of farmers in the United Kingdom,” said AUSVEG manager of government and parliamentary relations Andrew White.
“Australian vegetable growers and processors could potentially realise the same benefits if our governments followed suit and put in place its own plan and a local benefits test to source from local suppliers.”
Mr White called for better information about the existing level of local sourcing across all Australia’s Commonwealth and State and Territory agencies.
A Senate inquiry on Commonwealth Procurement Procedures was tabled last week that examined the rules for Australian goods and services procured by Commonwealth Government departments and agencies and found they should take into account the impact of the government’s procurement decisions on communities and on the broader economy, not just costs.
The investigating committee recommended the Department of Finance develop a test to provide a greater level of understanding regarding the quantity of Australian goods and services currently procured by the Commonwealth Government, with concerns that an ABN is not a good indication of whether goods are manufactured in Australia.
“With the inquiry acknowledging that there is scope for greater sourcing of local goods and services by the government, it is important that Australian producers are recognised when it comes to future food procurement standards set by the Commonwealth,” Mr White said.
“Government procurement of Australian-grown vegetables could provide a significant boost for the industry, particularly in the vegetable processing sector.
“However, we need a balanced procurement policy that ensures Australian taxpayers receive the best value for money, while supporting local farmers and fully appreciating the wider domestic economic benefits that will result from sourcing food locally.”
Existing procurement rules include all potential suppliers must be treated equitably and not discriminated against due to their degree of foreign affiliation or ownership.
ACT Senator Kate Lundy, the chair of the Senate committee supervising the inquiry, said it would be possible to improve procurement outcomes without affecting international trade deals.
Mr Cameron and UK Environment Secretary Elizabeth Truss announced the estimated £400 boost for their local food industry earlier this week, as part of the government’s long-term economic plan to back British businesses.
The public sector in England spends £1.2 billion every year on food and drink. Up to £600 million of that is spent on imported produce, £400 million of which could be sourced from within the UK.
Public sector buyers will now judge potential suppliers against five key criteria:
• how food is produced and whether the food was produced locally
• the health and nutritional content of food purchased
• the resource efficiency of producing the food, such as water and energy use and waste production
• how far the food bought meets government’s socio-economic priorities such as involvement of small and medium enterprises (SMEs)
• quality of service and value for money
This new buying standard means that just over half of the £400 million is estimated to be up for grabs by British farmers, as they are best placed to meet these new standards.
The wider public sector will be encouraged and supported in using the new framework with the expectation that all schools and hospitals will, in future, serve more locally reared meats and freshly picked fruit and vegetables.
“By opening up these contracts, we can help them (Britain farmers) create more jobs, invest in their businesses and make sure people in our country have a healthier lifestyle,” Mr Cameron said:
The new standards will help SMEs gain access to the lucrative public sector market and to support the small businesses further, a new buying process will start in September, centred around an online portal. Companies which register on this portal and meet the requirements of the plan’s scorecard will automatically be alerted when any eligible contracts come up for tender. They will then be able to apply in just a few clicks.
