Small businesses should get more of the $70 billion procurement pie: Pocock

Growing Australian companies should be given a fair shot at winning government procurement contracts rather than work simply being doled out to multinational firms, says independent senator David Pocock.

Pocock told The Mandarin that he is concerned sovereign Australian companies were not getting enough of the $70 billion procurement pie.

He said that amount represents how much the commonwealth government spends on goods and services per year.

“I’m arguing we should be better at spending that money, better at getting value for money but at the same time looking at things like retained economic benefit,” Pocock said.

“So investing in Australian companies — sovereign Australian companies — that are building up their capability in a whole range of industries from defence to quantum computing. We need to ensure we are investing in them and not just going with multinationals.”

Pocock has focused on small businesses as a senator for the Australian Capital Territory. A message he regularly hears from small business owners is that they want to be suppliers to the government rather than recipients of government grants.

He said there are local companies more likely to get contracts overseas than with the Australian government, which often defaults to big brand consulting firms because they are well known and have an established track record.

“It lends itself to a system where people are just going for what they think is the safe bet which is the big multinational because everyone knows their name,” Pocock said.

“In reality, what ends up happening is that multinationals are often skimming the cream off the top and subcontracting that to smaller Australian companies to help deliver that capability, that service. That is a ridiculous use of taxpayer money.

“We should have a system where smaller companies can compete, and they can win contracts.”

This article was first published by The Mandarin.