Local businesses vying for City of Mandurah work could be given an edge over their non-local competitors after October 23, when councillors are expected to formally adopt a new procurement policy.
While the city’s local government already had a Buy Local Procurement Policy in place, the price preference has been drastically increased.
Across the past several months, the amendments to the original deal have been drafted but they can only be implemented after receiving the green light from the council at their official meeting on October 23.
The current price preference has been set at two percent for Mandurah businesses and one percent for Peel businesses.
The change will see that preference jump to 10 per cent for businesses in both Mandurah and across the Peel region, when submitting bids for the supply of goods and services valued $75,000 and over.
Under the new policy, given quality and service provided by competitors is the same, local businesses could be up to 10 percent more expensive and still win the contract.
There are some variations to the deal.
The preference will fall back to five per cent when the contract is for construction services, up to a maximum price reduction of $50,000.
Under the policy, businesses must be located within Mandurah and the Shires of Murray, Boddington, Serpentine-Jarrahdale, and Waroona to benefit.
Those businesses also have to have been located within Mandurah or the Peel region for at least six months prior to the closing date of the procurement.
Mayor Rhys Williams said the changes to the policy were a demonstration that the City of Mandurah could support the local economy through purchasing.
In a report presented to councillors at a meeting in August, the economic benefits of favouring local business were outlined.
Research strongly indicated that direct purchasing spending into a local economy had an immediate, positive and significant benefit.
We bring a strategic and long-term approach to tackling community problems, sometimes the results will not happen instantly, but they will happen.
- Mandurah mayor Rhys Williams
“At the same meeting we were reminded about the high rate of unemployment among our young people and this will make a difference,” Mr Williams said.
“One of my priorities is supporting local business because they in-turn provide jobs for our young people.
“This meeting of council also saw a doubling in financial support for the local chamber of commerce and industry for the year.
“We bring a strategic and long-term approach to tackling community problems, sometimes the results will not happen instantly, but they will happen.
“We are a council that is looking at the long term and not just the next election.”
To read the full list of conditions included in the amended policy, visit the City of Mandurah website or click here.
What are your thoughts on the price preference changes? Share your opinion with our team via editor.mandurahmail@fairfaxmedia.com.au.
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