Australian Industry Participation Fact Sheet

(Last Reviewed : 31/08/2011 )

Key Points

Large firms may be unaware of the capabilities of Australian industry, especially small and medium sized enterprises, resulting in capable Australian companies being overlooked when contracts are awarded for major projects.
Commonwealth, state and territory governments are signatories to the Australian Industry Participation (AIP) National Framework. The AIP National Framework encourages governments to adopt a consistent national approach to maximising Australian industry participation in major projects, in Australia and overseas.
On 28 July 2009, the Australian Government announced $19.1 million in funding to boost Australian industry participation.
These measures build on existing policies and programs including the Industry Capability Network, Supplier Access to Major Projects and the Enhanced Project By-law Scheme to provide companies full, fair and reasonable opportunity to compete for government tenders and major projects.
The measures are consistent with value for money procurement principles and Australia’s international trade obligations.

AIP Plans set out how Australian industry will be given full, fair and reasonable opportunity to supply goods and services to major projects and government tenders.
The implementation of AIP Plans can save proponents time and money, reduce their risks by broadening their supply base, and deepen their understanding of the market.
From 1 January 2010, tenderers for large Commonwealth procurement are required to prepare, submit and implement AIP Plans.

The initiative funds the appointment of eminent business figures as Supplier Advocates to champion Australian suppliers in the government procurement market and in the supply chains of multinational firms operating in Australia.
Supplier Advocates provide leadership in targeted industry sectors to increase industry competitiveness and improve effective tendering for government business and increase the use of government programs.
Advocates have been appointed for rail (Bruce Griffiths) and steel (Cyril Benjamin), information technology (Don Easter), clean technologies (Andrew Parratt) and water (Bob Herbert).
Supplier Advocates are formulating industry development strategies for their respective sectors and are championing work to promote industry capabilities, map their industries’ technology requirements, improve competitiveness of firms and supply chains, and increase harmonisation of procurement standards.
The Department is working closely with Industry Innovation Councils, industry, unions, associations and government agencies to ensure commitment to the industry development strategies and to identify additional sectors where a Supplier Advocate could make a difference.

In July 2009, the Government announced plans to clarify the intent of the EPBS and the Tariff Concession System, and strengthen AIP requirements for private sector investment projects that access the EPBS.
From 29 March 2010, Customs and Border Protection Service has introduced a new application form and associated guidance material for Tariff Concession Orders (TCO). The new form and guidance material make it clearer that applications should be lodged only after genuine efforts have been made to establish that no Australian manufacturers are able to produce substitutable goods.
Revised EPBS Guidelines, effective from 30 April 2010, clarify the program and ensure that AIP Plans are in place at an early stage to increase opportunities for local suppliers to participate in projects accessing the EPBS.

The Government is providing additional funding to the Industry Capability Network (ICN) to increase opportunities for Australian industry in major projects in priority sectors, particularly government funded infrastructure projects. The ICN uses procurement experts to work with project developers to identify supply opportunities for capable and competitive Australian companies.
The ICN has appointed National Sector Managers to coordinate ICN activities for rail and transport, the National Broadband Network, clean energy, water, oil and gas, and hospital and medical.
ICN estimates that contracts worth more than $3.2 billion that may otherwise have been contracted offshore have been won by Australian and New Zealand industry as a result of the SAMP program.

The Government is working with the states and territories to revise the AIP National Framework to link government procurement more effectively with industry development, innovation and training initiatives.