DRAFT Leeton Shire Council Local Preference Policy
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Consultation has concluded
Leeton Shire Council endorsed its DRAFT Local Preference Policy to go on public exhibition from Friday 27th July until Friday 24th August 2018.
After reviewing several policies from other Councils it was determined that increasing the local preference levels in Council’s existing Policy was warranted.
The following changes have been endorsed in the Policy that will now be put out for public consultation:
Purchases up to $5,000 – local content to be given a 15% discount (up from a 10% discount).
Purchases from $5,000 to $15,000 – local content to be given a 10% discount (up from a 5% discount).
Purchases from $15,000 to $149,999.99 – local content to be given a 5% discount (up from a 3% discount). It was considered appropriate to increase the original third category ($15,000 to $99,999) up to $149,999.99 as this is just under the tendering limit.
Purchases above $150,000 (the current Tendering Limit) – local content to be given a 3% discount (new category).
The review of Council’s Local Preference Policy is being undertaken to ensure that Council promotes the local economy while still ensuring the best “overall value for money” in its procurement of goods and services.
To view a copy of the DRAFT Policy please CLICK HERE
If you have any comments regarding the draft policy please leave them below!
The DRAFT Local Preference Policy will be on public exhibition until Friday 24th August with submissions from the general public accepted up until 5pm on Friday 7th September.
Leeton Shire Council endorsed its DRAFT Local Preference Policy to go on public exhibition from Friday 27th July until Friday 24th August 2018.
After reviewing several policies from other Councils it was determined that increasing the local preference levels in Council’s existing Policy was warranted.
The following changes have been endorsed in the Policy that will now be put out for public consultation:
Purchases up to $5,000 – local content to be given a 15% discount (up from a 10% discount).
Purchases from $5,000 to $15,000 – local content to be given a 10% discount (up from a 5% discount).
Purchases from $15,000 to $149,999.99 – local content to be given a 5% discount (up from a 3% discount). It was considered appropriate to increase the original third category ($15,000 to $99,999) up to $149,999.99 as this is just under the tendering limit.
Purchases above $150,000 (the current Tendering Limit) – local content to be given a 3% discount (new category).
The review of Council’s Local Preference Policy is being undertaken to ensure that Council promotes the local economy while still ensuring the best “overall value for money” in its procurement of goods and services.
To view a copy of the DRAFT Policy please CLICK HERE
If you have any comments regarding the draft policy please leave them below!
The DRAFT Local Preference Policy will be on public exhibition until Friday 24th August with submissions from the general public accepted up until 5pm on Friday 7th September.
Thanks for your feedback in relation to the DRAFT Local
Preference Policy.
This policy is not about local businesses being uncompetitive,
the Policy gives preference to local suppliers and non-local suppliers using
local content in order to support economic development in the Leeton Shire
Local Government Area. The Policy recognises that overall value for money is
about broader economic benefits to the local government area and not just the
lowest price. Council acknowledges that
economic benefits to all local businesses where Council maximises opportunities
for local suppliers to compete for Council’s business on the basis of value for
money.
This policy does not facilitate local businesses charging
Council more for services. They are still required to go through a competitive
Expression of Interest or Tender process in order to win the business.
Council has an adopted Procurement Manual and a Code of
Conduct which are both in place to ensure transparency and reduce the risk of
fraudulent action.
If you have any further questions please don’t hesitate to
contact Council’s Director Corporate and Community Craig Bennett on (02) 6953
0911 or email council@leeton.nsw.gov.au
Consultation has concluded
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Good to see we can look after our own. I totally support this initiative for our local businesses
MHoughton
about 6 years ago
This is a good policy which is balance between local economic development and sustainability against the value to the community.There is information from the USA on how much money is generated from local business and business that operate mainly from out of town. I have included the text below
Figures from The Multiplier Effect of Local Independent Businesses
Clearly communicating the importance of the local economic multiplier effect or “local premium” is a key part of effective “buy local” and public education campaigns. The multiplier results from the fact that independent locally-owned businesses recirculate a far greater percentage of revenue locally compared to absentee-owned businesses (or locally-owned franchises*). In other words, going local creates more local wealth and jobs.
The multiplier is comprised of three elements — the direct, indirect, and induced impacts.
Direct impact is spending done by a business in the local economy to operate the business, including inventory, utilities, equipment and pay to employees. Indirect impact happens as dollars the local business spent at other area businesses re-circulate. Induced impact refers to the additional consumer spending that happens as employees, business owners and others spend their income in the local economy. The private research firm Civic Economics has executed the bulk of studies attempting to quantify the difference in local economic return between local independents and chain businesses. Their first such study , for the city of Austin, Texas showed an independent bookseller (Book People) and music seller (Waterloo Records) returned more than three times as much money to the local economy as a proposed Borders Books and Music outlet would.*
Those results since have been mirrored by subsequent studies (ten summarized here), each showing a much greater local multiplier for spending at independent businesses than chains. These studies measured the direct and indirect impacts to determine the base level local economic activity of a purchase made at a chain and a local independent business.
On average, 48 percent of each purchase at local independent businesses was recirculated locally, compared to less than 14 percent of purchases at chain stores. (See blue graph)
The Institute for Local Self-Reliance conducted perhaps the simplest study of the local multiplier effect in several small Maine communities in 2003. The study examined how much of a dollar spent at a local independent store is re-spent in the local area as payroll, goods/services purchased from area businesses, profits spent locally by owners, and as donations to area charities. The study found each $100 spent at local independents generated $45 of secondary local spending, compared to $14 for a big-box chain — nearly identical to later results across the many Civic Economics studies.
The above study is a USA study,but direct comparison can be validated. Buy keeping the local money local. The following impacts are self evidence:- 1 local business are often ask to donate or sponsor local events or teams. Which leads to our community participating in sports,events and community functions e.g. SunRice Festival,Light up Leeton, Trots, Bidgee Classic and all the football codes to mention a few 2 local business will train local tradesman and skills that are needed in our town. Then the community will not need to go out of town for trades services e.g. if you lose your car dealership, then they won't have the mechanics to service community 3 By keeping local people employed by local business will help keep the government services ,schools and amenities, because if you lose one families the knock effect is less pupils at the school then lest teachers will be employed and the result is they will move away from town 4 When business's tendering for State and Federal contracts or tenders. Business have been asked how many apprentices or indigenous people do they employ, which has a value put to it when awarding the contact or tender i.e. The more the business employ local apprentices or indigenous people, the more chance they will win it. e.g. building our submarine with 20% local content 5 Many local Governments have a Local Preference Policy with no adverse effect 6 Local business do not have any inside information when tendering. It is "a sealed box tender" they only have one chance to tender and they must give the best price first.There is no second chance. 7 The small margins which is afforded to the tender or contactor is "off set" by having a growing and sustainable local economy which will attract people and companies to our community as well as providing a life style and services that we all would want for ourselves and our children and their children 8 With this policy, the locals can compete with each other as well as other interested parties
georgeweston
over 6 years ago
This policy has been in place for a number of years and begs the question whether local businesses are so uncompetitive as to need the "discount" raised at this time? Does this policy actually contribute to local businesses charging Council more for services and, if so, is it not fiscally irresponsible?
Furthermore, my experience working both within and with Council is that opportunities to tender can be selective and are not always made publicly available for all businesses to participate. This opens the potential for favouritism. What policies are in place to ensure transparency and reduce the risk of fraudulent actions?
While this policy has the potential to ensure money spent by Leeton Shire Council remains in the Shire, it means that only a select few receive this benefit. In contrast, an approach that ensures the best value would mean that Council's financial reserves are maintained and this reduces the need to resort to revenue raising measures such as rates increases that impact more broadly across the community.
Jason
over 6 years ago
This is a policy that has been missing from the Council tendering process for many years About time that local business were given a preference as the benefit to the community is immense
RoyCurrie
over 6 years ago
I believe that this is a GREAT move. Every dollar spent in town goes back to benefit the local businesses and community.
Good to see we can look after our own. I totally support this initiative for our local businesses
This is a good policy which is balance between local economic development and sustainability against the value to the community.There is information from the USA on how much money is generated from local business and business that operate mainly from out of town. I have included the text below
Figures from The Multiplier Effect of Local Independent Businesses
Clearly communicating the importance of the local economic multiplier effect or “local premium” is a key part of effective “buy local” and public education campaigns. The multiplier results from the fact that independent locally-owned businesses recirculate a far greater percentage of revenue locally compared to absentee-owned businesses (or locally-owned franchises*). In other words, going local creates more local wealth and jobs.
The multiplier is comprised of three elements — the direct, indirect, and induced impacts.
Direct impact is spending done by a business in the local economy to operate the business, including inventory, utilities, equipment and pay to employees.
Indirect impact happens as dollars the local business spent at other area businesses re-circulate.
Induced impact refers to the additional consumer spending that happens as employees, business owners and others spend their income in the local economy.
The private research firm Civic Economics has executed the bulk of studies attempting to quantify the difference in local economic return between local independents and chain businesses. Their first such study , for the city of Austin, Texas showed an independent bookseller (Book People) and music seller (Waterloo Records) returned more than three times as much money to the local economy as a proposed Borders Books and Music outlet would.*
Those results since have been mirrored by subsequent studies (ten summarized here), each showing a much greater local multiplier for spending at independent businesses than chains. These studies measured the direct and indirect impacts to determine the base level local economic activity of a purchase made at a chain and a local independent business.
On average, 48 percent of each purchase at local independent businesses was recirculated locally, compared to less than 14 percent of purchases at chain stores. (See blue graph)
The Institute for Local Self-Reliance conducted perhaps the simplest study of the local multiplier effect in several small Maine communities in 2003. The study examined how much of a dollar spent at a local independent store is re-spent in the local area as payroll, goods/services purchased from area businesses, profits spent locally by owners, and as donations to area charities. The study found each $100 spent at local independents generated $45 of secondary local spending, compared to $14 for a big-box chain — nearly identical to later results across the many Civic Economics studies.
The above study is a USA study,but direct comparison can be validated. Buy keeping the local money local. The following impacts are self evidence:-
1 local business are often ask to donate or sponsor local events or teams. Which leads to our community participating in sports,events and community functions e.g. SunRice Festival,Light up Leeton, Trots, Bidgee Classic and all the football codes to mention a few
2 local business will train local tradesman and skills that are needed in our town. Then the community will not need to go out of town for trades services e.g. if you lose your car dealership, then they won't have the mechanics to service community
3 By keeping local people employed by local business will help keep the government services ,schools and amenities, because if you lose one families the knock effect is less pupils at the school then lest teachers will be employed and the result is they will move away from town
4 When business's tendering for State and Federal contracts or tenders. Business have been asked how many apprentices or indigenous people do they employ, which has a value put to it when awarding the contact or tender i.e. The more the business employ local apprentices or indigenous people, the more chance they will win it. e.g. building our submarine with 20% local content
5 Many local Governments have a Local Preference Policy with no adverse effect
6 Local business do not have any inside information when tendering. It is "a sealed box tender" they only have one chance to tender and they must give the best price first.There is no second chance.
7 The small margins which is afforded to the tender or contactor is "off set" by having a growing and sustainable local economy which will attract people and companies to our community as well as providing a life style and services that we all would want for ourselves and our children and their children
8 With this policy, the locals can compete with each other as well as other interested parties
This policy has been in place for a number of years and begs the question whether local businesses are so uncompetitive as to need the "discount" raised at this time? Does this policy actually contribute to local businesses charging Council more for services and, if so, is it not fiscally irresponsible?
Furthermore, my experience working both within and with Council is that opportunities to tender can be selective and are not always made publicly available for all businesses to participate. This opens the potential for favouritism. What policies are in place to ensure transparency and reduce the risk of fraudulent actions?
While this policy has the potential to ensure money spent by Leeton Shire Council remains in the Shire, it means that only a select few receive this benefit. In contrast, an approach that ensures the best value would mean that Council's financial reserves are maintained and this reduces the need to resort to revenue raising measures such as rates increases that impact more broadly across the community.
This is a policy that has been missing from the Council tendering process for many years
About time that local business were given a preference as the benefit to the community is immense
I believe that this is a GREAT move. Every dollar spent in town goes back to benefit the local businesses and community.