Regional small businesses will benefit from changes to service delivery

16/10/95

Changes to the way State Government services are delivered in the country will bring significant benefits to regional small business, Commerce and Trade Minister Hendy Cowan said today.

"Several major agencies will be devolving their services to the local level in coming months," Mr Cowan said.

"For instance, Agriculture WA (formerly the Department of Agriculture) is being restructured with significant numbers of staff being placed in regional and rural centres.

"Other agencies will be outsourcing project work to the private sector, and local enterprises will have preference in tendering for this work.

"There are many opportunities for local economic growth in the changes we will see through increased private sector activity from outsourcing what were public sector activities."

Main Roads has a $1 billion roads development and maintenance program, which will provide opportunities for local economic benefits.  As well, the $800 million sewerage backlog program will generate job opportunities in the regions.

The Government will encourage buyouts by agencies' employees, who can then contract for work formerly done by them as public sector workers.

The Water Authority of Western Australia and CALM, for instance, are likely to outsource work in this way.

Mr Cowan said the changes would mean a more effective and direct return of economic benefits to local communities and help develop new business.

"The Department of Commerce and Trade and the Regional Development Commissions will work with the major agencies concerned - Westrail, Main Roads, WAWA and Agriculture - to maximise the benefits to country centres," he said.

"I am keen to establish a greater professional presence in the regions, working both with local government and the private sector.

"There is already a 10 per cent preference to local contractors for work required, under the local purchasing policy.

"However, the benefit has a limit of $20,000.  I will be working to allow greater flexibility with this limit, as well as ensuring that the local preference policy is applied to all tenders impacting on regional WA."

Media contact:  Peter Jackson 222 9595