By Productivity Commission Chief Executive and Chair Matthew Butlin

On 31 October the State Government gave the new South Australian Productivity Commission its first job – to inquire into the efficiency and effectiveness of South Australian Government procurement processes and practices, and we’ll finalise our report by late May next year.

The Government buys nearly $5 billion of goods and services from businesses and non-government organisations, which has a direct impact on the state’s economy.  The inquiry is a great opportunity to recommend reforms to cut red tape and barriers to local businesses and employment while making sure that South Australians get value for their tax dollars.

The independent SAPC was established by the new State Government in October.  Our mandate is to gather a wide range of evidence, seek out stakeholders and do our own analysis and research to improve business conditions. Consulting with interested parties, particularly to hear their direct experience and to test the Commission’s thinking, will be a central to the way we work. We hope that by doing this well, it will lay the groundwork for the eventual robust, evidence-based recommendations we make to government. 

We want to make life easier for South Australians, whether it be by improving government procurement practices or in other aspects of doing business as we conduct future inquiries. Given 98 per cent of South Australia’s businesses are small to medium-sized, our core roles include helping to examine and make recommendations on matters referred to us by government to facilitate productivity growth, unlocking new economic opportunities, supporting job creation and removing existing regulatory barriers.

The Commission will consult widely, especially with businesses in South Australia, the Small Business Commissioner, the Industry Advocate, the State Procurement Board, business associations and industry representation (including unions), as well as other interested stakeholders.  This has already begun as part of our first inquiry, with the first round of consultation and submissions planned to finish just before Christmas. There will be further opportunities engage with the inquiry.

The Commission’s issues paper gives its early understanding of the procurement system, recent business criticisms and trends in Australia and overseas.  It asks for submissions and other input to clarify issues, close gaps and contribute experiences and information to help build the evidence base.
  
The scope of the inquiry excludes capital projects, local government and the public authorities prescribed by the State Procurement Regulations 2005 (e.g. SA Water, SA Housing Trust). If you’d like to be involved, please contact us via our website, at www.sapc.sa.gov.au

As the new chair and chief executive, I have come to the role after serving as Victoria’s independent Red Tape Commissioner for three years and for the seven years before that, I served as the Chair of the Victorian Competition and Efficiency Commission, which had a similar role to the SAPC.  I have also held various federal public service senior executive roles, and in the mining and management consulting industries. We are committed to helping the South Australian business community grow and thrive, and we welcome your support.

This article was originally published in the South Australian Business Journal on Tuesday 20 November.