The AFC welcomes the NSW Government's report on procurement practices, which highlights the untapped potential of local TCF manufacturing to drive economic growth and job creation.

The report identifies several critical areas where changes in government procurement policies could revolutionise the Australian fashion and textile industry, boosting local businesses and creating more job opportunities.

"The findings are a clear indication that supporting local TCF manufacturing is not just an option but a necessity to ensure the sustainability and resilience of our industry. By prioritising local content, we can empower women with job opportunities, leverage the multiplier effect of local manufacturing to drive ethical supply chains and accelerate the adoption of technology into advanced manufacturing. This is our opportunity to position Australia as a leader in innovative and sustainable products on the global stage, focusing on quality and innovation rather than competing solely on the lowest price.

"Government procurement plays a huge role in creating economic stability for manufacturers, giving them the fiscal headroom to invest in more staff, more training, and advanced equipment, which in turn drives innovation through research and development. It's crucial for the government to signal to the rest of the community that procurement decisions are no longer just about the cheapest option. This shift in focus will attract investment, foster innovation, and support the development of advanced manufacturing capabilities that can truly make Australia competitive globally," - Jaana Quaintance-James, CEO of the Australian Fashion Council.

To truly unlock the potential of the Australian fashion sector, the AFC urges the NSW Government to take bold steps in adopting these recommendations, particularly those that enhance opportunities for small businesses, support First Nations enterprises, and drive sustainability. By embracing these changes, the government can create a thriving ecosystem that fosters innovation, creates jobs, and supports local manufacturers.

Summary of Report Key Findings:

1. Support for Local Content: There is broad support among stakeholders for prioritising local content in procurement to boost the local economy and create jobs.
2. Modern Slavery Concerns: Current procurement practices lack transparency, leading to potential labour exploitation, especially in high-risk industries like cleaning and security.
3. Lack of environmental and Sustainability Standards: There are currently no goals to meet or achieve any Environmental or Social sustainability standards across procurement practices.
4. Compliance Gaps: Post-award compliance checks are infrequent, risking non-compliance with labour standards and contract obligations.
5. Small Business Access: Small businesses face barriers in participating in procurement processes due to a lack of capacity and complex tender requirements.

Summary of Recommendations for the Australian TCF Manufacturing Industry:

To promote the advancement of local manufacturing and job creation in Australia, the AFC support prioritising the following five recommendations from the report:

1. Prioritise Local Content in Procurement (Recommendation 1):
   • Support local innovation by breaking down tenders into smaller parts, enabling small businesses to participate.
   • This approach would directly benefit local manufacturers and support small businesses to scale up, increasing job opportunities and economic growth.
2. Mandate Modern Slavery Clauses (Recommendation 3):
   • Include modern slavery clauses in all procurement contracts to ensure ethical supply chain practices.
   • This recommendation aligns with ethical business practices and promotes fair labour standards, helping to protect workers in high-risk industries.
3. Establish a Jobs First Commission (Recommendation 9):
   • Implement measures to monitor and enforce local content requirements, ensuring systematic compliance checks.
   • A dedicated body like the Jobs First Commission will drive accountability in supporting local industries and increasing employment opportunities.
4. Support for Aboriginal and Diverse Enterprises (Recommendation 14):
   • Provide training, support, and skill development for Aboriginal businesses to help them succeed in government procurement.
   • Increasing diversity in the supply chain not only supports job creation but also fosters social inclusion and economic development within disadvantaged communities.
5. Incentivise Sustainability and Circular Economy Practices (Recommendation 18):
   • Introduce requirements for government tenders to focus on product stewardship and the circular economy.
   • Emphasising sustainability in procurement encourages innovation and positions NSW as a leader in environmentally responsible manufacturing.

By adopting these strategies, the future of Australian manufacturing can be brighter than ever, providing a more resilient and competitive landscape for businesses and communities across the country.

Read the report in full here

AFC MEMBER BRAND & MANUFACTURERS FORUM

AFC Members are invited to this session, where we will unpack the Victorian TCF manufacturing report findings and recommendations, and workshop industry priorities. This forum will be an opportunity for brands and manufacturers to collaborate, voice challenges and plan next steps for our manufacturing industry to be better supported, evolve and thrive.

WHEN: Wednesday, 23 October, 2024
TIME: 11.00am - 1.00pm
LOCATION: Epiphany Room, GPT Space&Co, 376-390 Collins Street, Melbourne
AFC Members can RSVP HERE