John 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.