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Opposition Leader Anthony Albanese wants to spend more government money on Australian businesses.Credit:AAP

Mr Albanese will tell the NSW Labor State Conference on Saturday he sees no reason why Australian taxpayer dollars should go to London when they can go to Launceston,or why governments buy from Pittsburgh when they can buy in Perth.

“The way in which governments use their purchasing power reflects how they view the government’s role in shaping the economy,” Mr Albanese will say,according to a draft copy of his address circulated to the media.

“As consumers,Australians often hear the words – buy local,think global. Australians do their best to patronise local businesses,knowing our hard-earned money supports the wages of our friends,neighbours and local community.”

The Australian government has spent almost $190 billion on procurement over the past three financial years,averaging 3 per cent of gross domestic product per year.

But only 25.2 per cent of 2019-2020 contracts were awarded to small to medium-sized businesses.

Labor has long battled with a strong push from the union movement to prioritise local jobs through procurement policy. In 2009 then-Finance Minister Lindsay Tanner rebuffed calls for preferential treatment to be given to Australian businesses when it came to the provision of government goods and services,arguing the main problem was many Australian businesses were unaware of opportunities.

The 10-point plan adds to the Local Projects,Local Jobs three-point plan that Labor took to the last election under former leader Bill Shorten.

Mr Albanese will promise that if Labor wins the next election it would establish a Future Made in Australia Office that would focus on promoting government purchasing opportunities to domestic businesses,with a special focus on small businesses,First Nations businesses and bringing opportunities to regional communities.

It would be tasked with legislating key elements of the Commonwealth Procurement Rules including a Future Made in Australia Act,which would seek to maximise the use of Australian-made goods,products and materials in Commonwealth contracts.

The policy would also aim to provide more opportunities for Australian companies to participate in the infrastructure pipeline by levelling the playing field for local companies against large multinational firms.

About 95 per cent of the top 20 infrastructure projects worth more than $500 million between 2015 and 2020 were delivered by contractors with foreign ownership. Mid and small-tier companies argue that current government purchasing rules favour larger businesses.

Mr Albanese will say that the plans would ensure Australia’s capacity to manufacture essential goods in areas including health,energy,infrastructure,defence and space and communications was increased and that the nation was more resilient.

“We have workers who are highly respected and sought after all around the world,as well as businesses and entrepreneurs who provide environments for them to flourish in. What we lack right now is a federal government who is willing to back them,” he will say.

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