CLP relaxes oversight on govt tenders amid questions of local impact | NT Independent

CLP relaxes oversight on govt tenders amid questions of local impact

by | Sep 3, 2025 | Business, News | 0 comments

The NT Government has scrapped the requirement to have certain tenders reviewed by a panel in an effort it says is to streamline “direct purchasing from Territory enterprises” despite previous concerns from the Buy Local Advocate and industry that government spending was not hitting intended local targets in part due to the lack of data about government contracts.

The changes will mean that, as of October 1, there will no longer be public records kept for tenders awarded up to $50,000, which will increase the tier-one level from its previous $15,000 threshold.

The value of contracts classified as tier-two will increase from $100,000 to $200,000.

Last year, Buy Local Advocate Denys Stedman, who has since retired, criticised the NT Government for permitting the proportion of contracts awarded to local businesses to drop to its lowest level since the Buy Local Plan was established by the previous Labor government.

Mr Stedman told the ABC last February that declining contracts going to local businesses in 2023-24 was “very disappointing” and that the primary objective of the Buy Local Plan was not delivered, frustrated by “incomplete and unreliable…procurement information”.

“If I don’t have the tier one information, how would I even know, firstly how much it was, and secondly, who it was spent with?” he asked.

The total annual value for tier-one contracts was not made available.

The Government did not explain why it was expanding the value of tier-one contracts that will no longer be disclosed, which contrasts with Mr Stedman saying it hampered measuring the effectiveness of the Buy Local Plan.

Instead, CLP Business Minister Robyn Cahill said in a statement the new tier thresholds were “about streamlining processes and removing unnecessary barriers so businesses and government can get on with the job more quickly”, adding it is all part of the “year of action”.

Ms Cahill added that relaxed procurement oversight would “remove administrative hurdles, reduce delays, and enhance efficiency for purchases such as milk, office chairs or one-off cleaning services”.

But tier one contracts have also included consultancy engagements that have been varied, extended and increased after first being awarded.

There will now be less oversight of contracts initially valued at $50,000 or less.

Ms Cahill said the changes were coming in before the new “Territory Procurement Champion” is put in place to replace the Buy Local Advocate. That person has not been selected.

A “Procurement Reform Roadshow” will be held this month across the NT, “giving Territory businesses the opportunity to attend free information sessions and learn more about the changes”, Ms Cahill said. Tour dates are available on the government’s procurement website.

 

 

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