QLD Government Undermines its own Policy by Awarding Clothing contracts to China

Recently, I’ve been working closely with SMEs in the manufacturing sector, guiding them through the process of applying for Queensland’s Manufacturing Energy Efficiency Grant. This grant, offering up to $50,000, provides critical support for SMEs (with up to 200 employees) to invest in energy-efficient equipment, helping to combat the ever-increasing cost of energy.

This initiative is a much-needed lifeline for small businesses and Queensland’s dwindling manufacturing industry, which has been hit hard by long-standing, federally driven political and economic challenges.

In 2023, the Queensland Government launched its Buy Queensland Policy, a strategic approach to procurement designed to maximize the economic, social, and environmental benefits of government spending. The key objectives of this policy are clear:

• Support local jobs: Prioritizing quality jobs for Queenslanders through targeted government procurement.
• Boost the economy: Strengthening a resilient, thriving, and decarbonized local economy by supporting Queensland suppliers.
• Leave a positive legacy: Ensuring that government investments provide long-term, sustainable value for current and future generations.
• Increase trust and accountability: Elevating the procurement process through data-driven insights, robust engagement, and improved transparency.

The concept is sound, even admirable. So much so that the Federal Government is working on a national version.

However, real-world execution tells a different story. One of my clients, Queensland’s last remaining sports uniform manufacturer, knows this first-hand. The flood of cheap offshore clothing isn’t new, and under the current policy settings, it’s no surprise that labor-intensive manufacturing jobs continue to vanish overseas.

While the Manufacturing Energy Efficiency Grant has been appreciated, my client was understandably baffled by the government’s inconsistency. Despite offering support through this grant, government tenders for departments —such as uniforms for Police, Fire, SES, and Education—are regularly awarded to companies sourcing from China.

In a recent meeting with the Department of Education, my client questioned why tender submissions excluded details about the source of manufacture and sustainability. The response? “Good questions, but we don’t know why.”

Clearly, the Buy Queensland Policy is not being applied across all departments.

As a private consultant, I can’t change government procedures, but I can call out these glaring inconsistencies. With elections around the corner, those in my network who care about the future of small business have an opportunity to raise these issues with their local members. Now is the time to push for genuine support for Queensland’s manufacturing and SME sectors.

With the Olympic Games on the horizon, we must stay vigilant. It’s crucial that local suppliers are prioritized before overseas operators set up token subsidiaries to secure contracts, bypassing the very spirit of the Buy Queensland Policy. We need to hold our leaders accountable.