Mrs West asked the Minister for Finance and Administration, upon notice, on 24 September 1997:

Further to my question without notice (Hansard , 17 June 1997, page 5362) concerning Government purchasing, has the Government introduced initiatives to maintain and increase the policy of 10% of Commonwealth purchases being made from small business; if so, what.

Mr Fahey (Finance and Administration) —The answer to the honourable member's question is as follows:

On 8 August 1997 Commonwealth, State and Territory Procurement and Construction Ministers agreed to endorse the adoption of the `National Action on Small to Medium Enterprises in Government Procurement' as an agreed strategy to im prove the access of SMEs to Government procurement opportunities, especially in regional Australia. The agreed national actions include measures that:

. reduce the cost of doing business for SMEs and for government;

. encourage greater participation by SMEs in the contract chain;

. promote the benefits to SMEs of the use of electronic commerce; and

. give greater consideration to the regional impact of government procurement decision making.

The Department of Finance and Administration is progressing initiatives to advance the national actions. The former National Procurement Board also conducted seminars around Australia and invited SMEs to comment on aspects of Government procurement.

The Government announced new streamlined and simplified Commonwealth purchasing arrangements in December 1997 to cut the cost of doing business with Federal Government departments and to provide greater opportunities for small business to participate in Government markets.

The key initiatives included:

. maintenance of the Government's election commitment that Commonwealth departments and agencies source at least 10% of their purchases from small and medium enterprises (SMEs);

. inclusion of industry development requirements and opportunities for SMEs in tender documents for major projects valued at over $10 million;

. abolition of the commission imposed on businesses supplying to government under Common Use Arrangements with effect from December 1997;

. establishment of a pre-qualification scheme for businesses supplying in specific markets where the government is a major purchaser. The primary aim of the scheme is to reduce the cost for suppliers and buyers in doing business;

. establishment in March 1998 of a Purchasing Advisory and Complaints Service within the Department of Finance and Administration to assist suppliers (particularly SMEs) with problems they may experience with departmental purchasing processes.