New law gives locals a share of major projects

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New law gives locals a share of major projects

Legislation to guarantee Australian businesses a share of major infrastructure and resource projects, and to create more jobs, has passed the Senate.

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Legislation to guarantee Australian businesses a share of major infrastructure and resource projects, and to create more jobs, has passed the Senate.

The Australian Jobs Bill passed the Senate yesterday, ensuring by law that Australian businesses will have full, fair and reasonable opportunity to access work on major projects.

The Australian Jobs Act will ensure all projects worth $500 million or more will complete Australian Industry Participation (AIP) Plans, regardless of their location and regardless of their industry sector.

Opportunities

Under the law, all major projects, including major city infrastructure projects and resources projects in regional and remote areas, will be required to show how they are providing opportunities to Australian businesses.

The Federal Government estimates this legislation will result in between $1.6 and $6.4 billion of extra work going to Australian businesses every year, generating new job.

‘It will no longer be the norm for major project proponents to default to using global supply chains and importing materials and services for these projects,’ said the Minister for Industry, Greg Combet.

‘This legislation will also create opportunities for Australian businesses to join global supply chains rather than be locked out by their use.’

Support

Combet said the Act had strong support from industry and unions, with the overwhelming majority of submissions to a Senate inquiry into the legislation supporting its full passage.

The Act will also establish the new Australian Industry Participation Authority, which will independently administer AIP requirements and ensure compliance.

It will also bring under one roof other programs designed to increase industry participation in major projects, such as the Buy Australian at Home and Abroad initiative and the industry Supplier Advocates.

Combet said the Coalition had voted against the Act, in both the House of Representatives and in the Senate.
 
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