Page 4266 - Week 11 - Thursday, 25 October 2018
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procurement, from the tender design, issue and assessment, as well as ensuring that the requirements apply to the contract phase of procurement.
Under the bill, any procurements that fall within the definition of territory-funded work would be required to hold a secure local jobs code certificate and, in the case of procurements over $25,000, submit a labour relations training and workplace equity plan. This will ensure that the new obligations create a level playing field for all businesses that choose to be a party to procurements offered by the territory. It will enshrine in legislation the standards that the government expects from employers that it does business with.
The bill will apply to territory-funded work that, from the commencement date, is to be defined as capturing four identified contract types. These are construction work, building or other industrial cleaning services, traffic control services and security services. These industries have been identified as key industries where there is a need to do more to support safe and fair workplaces.
Members of the Assembly might wish to note that in 2015-16 the cleaning industry was the third highest sector by matters that were litigated by the Fair Work Ombudsman, accounting for 14 per cent of the total litigation actions commenced by the Fair Work Ombudsman. The construction, cleaning and security industries have also been consistently identified as industries where insecure working arrangements and non-compliance with workplace standards, such as fair work obligations and work health and safety, are prevalent.
Members of the Assembly will note that the intention is to eventually capture any contract for services or works that is primarily for labour and has an estimated value that is to be prescribed by regulation, initially set to be $200,000. This is in addition to the four initial industries that are expressly identified as being within the definition of territory-funded work. It should also be noted that the general application of territory-funded work to procurements that are primarily for labour is intended to exclude certain professional services. These services have already been identified in a consultation draft of the Government Procurement (Secure Local Jobs) Amendment Regulation 2018.
Specifically, they include information media and telecommunications services; rental, hiring and real estate services; financial and insurance services; and professional scientific and technical services. These are services that are considered, in a procurement sense, to be ancillary to the provision of services and works that are primarily for labour—for example, engineering, architectural and surveying services.
While it is the intention of this legislation to generally capture procurements that are primarily for labour, it is recognised that a staged approach is necessary. Delaying the commencement of the new obligations in relation to procurements that are primarily for labour will facilitate a transitioned approach. This will ensure that the supporting infrastructure governance and capacity for administering the new requirements can be built up over time, from initial capacity for the first stage through to full capacity by the time the delayed amendment under schedule 1 of the bill commences.
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