As a former minister for Innovation Industry Science and Research, as well as Higher Education, I welcome the Ambitious Australia (the strategic examination of R&D) final report’s proposition that “procurement is one of the most important levers governments have to drive change.”
I dispute the suggestion by the Digital Transformation Agency Chief Executive, Chris Fechner that the panel’s recommendations on procurement would be in breach of free trade agreements.
It is surprising that a statutory authority head would seek to challenge the stated government policy or the current law.
The Commonwealth Procurement Rules (CPRs) were updated as recently as November 2025. They give a specific focus on prioritising Australian business as part of the Buy Australian Plan.
The Australian Jobs Act has been in place since 2013. It seeks to provide regulation for major projects through the use of Australian industry participation plans.
Similar policies are in place for government procurement at state level and for other Commonwealth projects. These policies are in need of further refinement.
The ideological presumption that government procurement guidelines are about mandating exclusion of foreign investment is mistaken.
Australian industry participation plans have been around for a long time. They are administered by the Australian Industry Participation Authority and mandate that Australian businesses receive full, fair and reasonable opportunities to compete against international firms.
Government has a responsibility to be an exemplar in building national capabilities and opportunities that ensure living standards and protect sovereign risk.
Free Trade Agreements are rarely based on free trade. They are riddled with carve-outs when implemented, and as President Trump has demonstrated, are ignored when governments choose to.
It is more important than ever that Australian governments invest in Australian RD&I (research and development, and innovation) so as to build new jobs, new industries and to revitalise old ones.
The Prime Minister and the Treasurer have made it clear in recent times that the old assumptions of neo-liberalism cannot be relied upon in our brave new world.
To quote the Prime Minister, “the stable predictable world of ever expanding free trade has gone.” And “there is no security in maintaining a status quo that does not work for people.”
Instead of relying on old shibboleths, it is time to build anew.
Do you know more? Contact James Riley via Email.