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Giving local businesses tender preference may not work

INTRODUCING a system to make it easier for local businesses to win council tenders won't necessarily give more jobs to local businesses.

Gladstone Regional Council is under pressure to re-introduce a 'weighting system' that will give locals a better chance of winning council tenders.

But figures from neighbouring councils show it might not make much difference.

MORE ON THIS ISSUE:

>> Figures show bulk of council tenders go to local companies

>> Councillors vote against weighting for local tenders

>> Council not giving local business a head start, GEA says

>> Mayor says: More tenders are going to local companies

Last year Rockhampton Regional Council spent $50 million on goods and services under a 5% weighting system.

Just under $35 million of that (69%) was spent locally, which is the most since 2008 when the statistics were first measured.

That compares with the Gladstone council figures for this financial year - released last week - that show 70% of council jobs went to local companies, with no weighting system.

Rockhampton Regional Council has not been able to measure if its policy change has impacted the numbers of jobs won locally.

But the change has encouraged local suppliers to engage with the council, a spokesperson for Rockhampton Regional Council said.

Topics:  gladstone business gladstone regional council tenders



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