Smart procurement

sparks-692122_1280John Spoehr spoke with Leon Byner on 5AA this morning (10 March 2016) about smart procurement. John reflected:

  • it is great to hear the minister Christopher Pyne talk about using government procurement to create jobs and new business opportunities in Australia.
  • governments at all levels procure a range of goods of services, and historically there has been an obsession with obtaining the lowest cost.
  • news that Arrium steel will be used on the Adelaide to Tarcoola line is just part of the puzzle.
  • there is a need to address the dumping of cheap overseas product from places like China, India, and Thailand.
  • the Arrium workforce offer to take a pay cut was very generous, but it is not a sustainable formula, as there will always be other nations that can produce more cheaply on the basis of lower wages and poor environmental conditions.
  • Australia needs to compete on quality.
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