The Kingaroy Chamber of Commerce and Industry (KCCI) wants to see the South Burnett Regional Council spend as much as 80 per cent of its purchasing dollars with South Burnett businesses.
At Tuesday night’s six-weekly Meet & Greet, which was held at the Lady Bjelke-Petersen Community Hospital, KCCI president Rob Fitz-Herbert said members of the KCCI’s executive had recently held discussions with the South Burnett Regional Council about its purchasing policies.
The discussions were prompted by concerns the Council was directing a substantial amount of purchasing outside the region for goods and services that could be obtained locally.
The KCCI was also concerned there appeared to be fewer checks and balances on large dollar purchases than there were on smaller ones.
In 2012, former South Burnett Mayor Wayne Kratzmann instituted a “Buy Local” policy for Council purchases which preferenced local businesses.
At that time, an examination of Council purchasing disclosed the South Burnett Regional Council spent $16 million a year on staff wages; $16 million a year purchasing goods and services from local businesses; and $16 million a year on items which couldn’t be sourced within the region along with other costs, such as superannuation and income tax, out of its $54 million Budget.
This meant there was a pool of $6 million remaining that could also potentially be spent with local businesses.
Mayor Kratzmann introduced a policy that gave a 10 per cent preference to local businesses for amounts of $25,000 or less; 7.5 per cent for amounts between $25,001 and $50,000; 5.0 per cent for amounts between $50,001 and $100,000; and 2.5 per cent for amounts between $100,001 and $150,000.
The local preference policy was passed in December 2012 and new preferred supplier registers were created in September 2013.
The new registers covered the period 2013 to 2015, but it is believed they were used until late 2017, at which time South Burnett Mayor Keith Campbell announced the Council would extend existing contracts with businesses on its Prequalified Suppliers list on a month by month basis until June 30 this year so it could review current contracting arrangements.
Mayor Campbell said the review would examine:
- The ability of the Council to implement longer contract periods
- Greater flexibility to add and remove suppliers
- Renewal of suppliers every 12 months
- Revising the Prequalified Suppliers Registers categories to better meet Council’s requirements
The outcome of this review has not yet been released.
KCCI president Rob Fitz-Herbert said the group was concerned that over the intervening six years since the ‘Local Buy’ policy was first adopted its original intent – to stimulate the local economy and create jobs – had been forgotten.
However, he said the group had a positive initial discussion with the Council about its concerns, and looked forward to a follow-up meeting after this year’s Council Budget was handed down in late June.
This financial year the Council has budgeted for almost $61 million in expenditures, a figure that is expected to rise further in 2018-19.
Related articles:
- Council Extends Prequalified Suppliers List
- Locals Are Now ‘Preferred’ Suppliers
- Preferred Supplier Meetings On Again
- Preferred Supplier Meetings Postponed
- SBRC Looking For Preferred Suppliers
- Council To “Think Local First”
- Local Purchasing Policy Adopted
- New Laws Will Help ‘Buy Local’ Policy
- Council Wants To Buy $6m More Locally
- Locals Are Now ‘Preferred’ Suppliers
