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New policy outlines stronger support for local business

Pile of newspapers wrapped in string.

Wednesday 20 May 2020

Last night Mount Alexander Shire Council adopted a new Procurement Policy with a stronger focus on supporting local businesses.

Council’s existing Procurement Policy was adopted by Council in June 2019. In accordance with Section 186A of the Local Government Act 1989 it must be reviewed at least once each financial year.

An effective Procurement Policy should ensure Council receives value for money in its purchasing activities, whilst maintaining effective and productive supplier relationships.

It relates to the acquisition of goods, services and works by Council. It contains both mandatory and best practice requirements.

“In adopting this new policy, we have been mindful to consider the significant impact that the COVID-19 pandemic has had on our local economy,” said Cr Christine Henderson, Mayor of Mount Alexander Shire Council.

“In previous years the procurement policy has included guidelines and weightings to support local business but we wanted to strengthen our position.

“Supporting our local economy is even more important at this time to assist with the viability of local businesses and the retention of employees,” said Cr Henderson.

Councillors were keen to adopt a policy that included an increase to the minimum percentage weighting allocated to the Local Content/Economic Benefit evaluation criteria to 20 percent for all competitive purchases above $15,000 (including GST).

This is a change up from a five percent minimum for purchases above $60,000 (including GST).

Another consideration is Council’s commitment to reach zero net emissions for its own operations by 2025. As part of this effort, Council will give preference to suppliers who have set similar goals.

“We appreciate the work of officers to review this policy in the context of the changes that have resulted from the COVID-19 related restrictions,” said Cr Henderson.

The adopted 2020 Procurement Policy will come into effect immediately and is available for viewing on Council’s website www.mountalexander.vic.gov.au.


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