Page 1026 - Week 04 - Wednesday, 28 March 1990
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businesses to government contracts, and ensuring that contracts are let in the most cost effective parcels and, finally, removing barriers to open competition.
In implementing this policy the Government believes that the task requires greater focus upon a number of key Commonwealth-State programs and an associated effort in raising the ACT's profile in key Commonwealth-State forums.
Initially, these programs include the following four: the first is the national industry extension service; the second is the Australian civil offsets program; the third is the national procurement development program; and the fourth is the industrial supplies office network.
The national industry extension service is the major Commonwealth-State program to assist in improving efficiency of Australia manufacturing and service enterprises, thereby increasing their competitiveness in international markets. It encourages companies to adopt a strategic approach to their business through assistance with access to new and existing sources of specialist advice.
Under the Australian civil offsets program, overseas companies that make significant sales to Australian government agencies - whether State or Federal - are obliged to spend up to 30 per cent of the value of contracts on Australian companies and/or research institutions on export development and import replacement activities. One of the beneficial aspects of this program from the ACT's point of view is that offsets obligations incurred in one Australian State may be transferred to another.
Raising the ACT's share of these offset obligations to around 5 per cent by 1991-1992 would result in additional employment opportunities, significant overseas capital injections into ACT companies and research institutions - and that has been estimated at $18m a year - and increased access for ACT companies and institutions to international markets and new technologies.
The national procurement development program is an industry-based program which aims to encourage the development of new Australian technology by providing funds for trialling and demonstration, and research and development, of Australian products, systems and services which government bodies need. All national procurement development program funded projects involve collaboration between industry and government partners and the strategic use of inherent government purchasing leverage to improve the efficiency and international competitiveness of Australian industry.
I am particularly optimistic, Mr Speaker, about the ability of ACT companies to benefit from this program. Although it is funded entirely by the Commonwealth Government, at the
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