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The Canberra Times
The Canberra Times
National
Jasper Lindell

RARE PHOTOS: Name change for confusing secure local jobs code among overhaul ideas | Rare Historical Photos

A name change for a procurement certification process is among the options the ACT has sought feedback on as it heads towards a formal review of the contentious pre-tender approval system.

Dropping "local" from the name of the Secure Local Jobs Code was among the options put to members of the code's advisory council in a discussion paper that noted the title was "causing confusion about its purpose and operation".

The ACT government has sought preliminary views on the operation of its Secure Local Jobs Code ahead of a review. Picture by Karleen Minney

The paper asked for views on whether the code's name should be "amended to better reflect its purpose, scope and operation" and sought alternative name suggestions.

Advisory council members were also asked for thoughts on the code's objectives and whether there was enough independence from the procurement process.

The Secure Local Jobs Code has faced a fresh round of scrutiny after the Integrity Commission made findings of serious corrupt conduct over the involvement of the Construction, Forestry and Maritime Union (CFMEU) in a school upgrade procurement process.

The code was introduced in 2018 and requires firms being awarded government contracts worth more than $200,000 to hold a certificate showing they comply with industrial laws and allow union representation for their employees.

The Canberra Liberals have called for the code to be abolished as part of an effort to cleanse the procurement system of union influence.

Deputy Chief Minister Rachel Stephen-Smith, who led the introduction of the code in 2018, has defended the code from the most recent political attacks.

"The Secure Local Jobs Code is about ensuring that when the ACT government spends public money, it supports good jobs, safe workplaces and businesses that do the right thing," she has said.

Deputy Chief Minister Rachel Stephen-Smith. Picture by Keegan Carroll

Opposition Leader Mark Parton asked in budget estimates for evidence the code had created local jobs, including for apprentices, women and First Nations people.

Industrial Relations Minister Michael Pettersson said the question indicated a misunderstanding of what the policy sought to achieve.

"The Secure Local Jobs Code is a policy that seeks to ensure people undertaking ACT government work at a minimum are complying with the law. That is its primary purpose," Mr Pettersson said.

Advisory council members were also asked what changes should be made to strengthen the oversight of subcontractors on government procurement.

"The code currently places the majority of obligations on head contractors and emphasises compliance at the certification stage. Should the code adopt a broader supply chain approach to compliance?" the discussion paper said.

Apparent underpayment for subcontracted traffic controllers on the light rail extension project was revealed by the CFMEU after the company's Secure Local Jobs Code certificate expired, forcing them off the job.

While the union said the incident showed the importance of the code, some industry observers noted it revealed the lack of continuous compliance checks meant companies could do the wrong thing without being caught as long as they held an active certificate. Certificates can be issued for up to 30 months.

Expanding the code to include adverse criminal and integrity findings was another option put to the code's advisory council members, who were asked what benefits, risks and implementation issues would need to be considered if the code's prescribed legislation was expanded.

The government has committed to a review of the code while a Legislative Assembly inquiry has also launched its own examination of the system.

Ms Stephen-Smith has said the government would consult with the Assembly's public accounts and administration committee on how best to manage the obvious risks of duplication.

"Many of the issues raised by stakeholders relate to the effectiveness of local industry participation policies and the management of contractors and subcontracting arrangements, rather than the operation of the Code itself," Ms Stephen-Smith said.

"The government's review will include consideration of the code's role in the wider procurement system, recognising there has been significant procurement reform in recent years."

The Liberals' James Milligan, who chairs the public accounts and administration committee, has said the parliamentary inquiry was intended to examine if the code was achieving its objectives of supporting local jobs, upholding industrial relations standards, and delivering value for money.

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