Australian companies working on major projects continue to demonstrate that they can successfully compete against global competitors to win work supplying goods and services to major projects.
However, Australian firms still face challenges in gaining access to global supply markets and major investment projects. The relatively small size of the Australian economy, coupled with its geographical distance from the major markets of Europe and North America, and the trend towards greater use of established supply chains by international investors, can create significant impediments to Australian industry participation in major projects.
The Government recognises the barriers faced by Australian suppliers and encourages major projects, both public and private, to develop an Australian Industry Participation (AIP) Plan. AIP Plans set out how companies will provide full, fair and reasonable opportunity for Australian industry to participate in the project.
This approach seeks to assist Australian industry to gain a foothold in major projects by encouraging Australian industry to innovate, develop competitive capability and take advantage of investment opportunities. There is a strong emphasis on industry development, in particular the formation of strategic alliances, to position capable Australian industry to leverage opportunities and integrate into global supply markets.
To assist companies and ensure better program integration, the Australian Government has provided over $58 million to Buy Australian at Home and Abroad initiatives. These initiatives contribute to a coordinated approach with the Australian Government's existing AIP initiatives. Included under the broad Buy Australian at Home and Abroad initiative is funding for the appointment of Supplier Advocates, the implementation of the AIP Plans and the expansion of the Supplier Access to Major Projects program. Also included is the establishment of the Clean Technology Focus for Supply Chains program, the appointment of a Resources Sector Supplier Envoy, and a Resources Sector Supplier Advisory Forum.
Strengthening Australian Industry Participation
On 1 July 2012 significant reforms to Australian industry participation initiatives came into effect. These reforms strengthen the Commonwealth’s approach to AIP and will provide more opportunities for Australian industry to win work supplying goods and services to major projects. The reforms include:
- Requiring publication of AIP Plans and outcomes;
- Requiring more comprehensive evidence of opportunities being made available to Australian industry through all stages of the EPBS;
- Requiring project proponents to list details of opportunities for Australian industry to participate in major projects on a public website for large EPBS projects (greater than $2 billion);
- Requiring project proponents to report more regularly on AIP Plans and their outcomes, for large EPBS projects (greater than $2 billion);
- Amending the EPBS guidelines to require approval of eligible goods as an additional step for large projects (greater than $2 billion);
- Extending AIP Plans to projects which receive Commonwealth grants over $20 million; and
- Extending AIP Plans to large infrastructure projects where funding over $20 million is provided by the Commonwealth through the states and territories.
The implementation of these measures follows the Australian Government’s acceptance of the recommendations of the AIP Working Group that was appointed to advise the Government. More information on the AIP Working Group, including a copy of its report and the Australian Government's response, can be accessed from the Strengthening Opportunities for Australian Industry Participation page.
AIP Plan Executive Summaries
Other AIP and Related Programs
Australian Government Procurement Statement Evaluation 2012
An evaluation of elements of the Australian Government Procurement Statement was conducted by Bremer and Co on behalf of the Department of Industry, Innovation, Science, Research and Tertiary Education in 2012. The evaluation examined the efficiency, effectiveness, appropriateness, integration, strategic policy alignment and performance assessment of the Supplier Advocates, National Sector Managers and AIP Plans in Commonwealth Government Procurement initiatives.
View the Executive Summary of the Evaluation of elements of the 2009 Procurement Statement [PDF 200KB] [DOC 218KB]. A copy of the full report is available upon request.
For further information on AIP measures please contact email@example.com.