Indigenous business central in Closing the Gap ON 13 FEBRUARY 2017

INDIGENOUS Procurement Policy (IPP) has delivered on the Government’s targets for Indigenous business procurement and is set to be supercharged, Small Business Minister Michael McCormack says.

“The target of 3 per cent Indigenous procurement by 2020 has been a focus of this Government since the IPP was introduced in the 2015-16 financial year,” Mr McCormack said.

“With procurement data for this year surpassing the 0.5 per cent target set, the Government wants to supercharge Indigenous procurement and ensure Indigenous small business can help deliver Government goods and services in remote and Indigenous communities across the country.”

Mr McCormack said the original target acknowledged the low base of Commonwealth procurement, at $6.2 million in 2012-13.

“Indigenous Affairs Minister Senator Nigel Scullion and I know the success the 2015-16 financial year data is the result of an understanding by Government of how small business works and the policies needed to back them,” Mr McCormack said.

“With more than 1,500 direct and indirect contracts flowing to almost 500 Indigenous businesses, more than $248 million – or 46 times the value of Indigenous contracts – have been delivered under our policy.”

Mr McCormack said that whilst the Government’s 2020 target was achieved more than three years ahead of schedule, there is more work to be done.

“Minister Scullion and I know the importance of ongoing procurement for Indigenous businesses, however we acknowledge the Commonwealth needs to partner with the States and Territories to improve on this great work,” Mr McCormack said.

“The Federal Coalition Government will continue to work towards ensuring our procurement dollar can be spent to the benefit of as many Australians – including our First Australians – as possible.”

Cristy Houghton