Public procurement policy aims to increase local production and create jobs

Public procurement and stronger product stewardship are key to creating hundreds of local jobs, according to Lina Goodman, CEO of Tyre Stewardship Australia.

Speaking at a parliamentary inquiry into the procurement practices of NSW government agencies, Goodman highlighted the need for the government to use its leverage over public procurement and product stewardship regulations to drive the investment needed to create jobs in the circular economy.

This approach would strengthen Made in Australia sector and stimulate end markets for recycled products, according to a press release.

“Without practical and effective government interventions in procurement regulation and product governance, many of these markets cannot and will not thrive,” Goodman warned.

She stressed that markets for recycled tire products have plateaued and are at risk of collapse.

By adopting a product responsibility approach to your procurement process, you can achieve significant positive results by making simple changes.

These include mandatory use of crumb rubber in road asphalt, avoiding disposable tyres by supporting retreading in government bus fleets and contracts, and only purchasing tyres from brands and retailers that voluntarily participate in Australia’s current Responsible Product Stewardship Program.

“Progressive countries and governments have used the power of public procurement and regulation to effectively create jobs and develop markets that use recycled materials,” Goodman noted.

Goodman said government procurement and industry, through Tyre Stewardship Australia, can work together to create circular economy work related to the processing and re-manufacturing of products from recycled materials.

She cited Canada as an example of success, where government regulations on responsible tire product management support initiatives, incentives and innovations in manufacturing using recycled materials.

“One Canadian rubber manufacturer shared that its revenues increased tenfold as a direct result of government intervention in the form of tire product management regulations. The result has been the creation of jobs in a circular economy, increased local consumption of used tire material and a thriving product line sold throughout North America,” Goodman said.

Goodman believes similar success can be achieved in New South Wales and across Australia through the introduction of a more rigorous mandatory procurement policy that considers the life cycle of a tyre and its full lifecycle impact, rather than just the lowest price, and through the introduction of rigorous responsible product stewardship regulations.