The NSW Government is moving ahead with its plan to strengthen protections against modern slavery by directing government agencies to apply tougher conditions when purchasing goods and services. A new Ministerial Direction has been issued requiring agencies to include modern slavery tender clauses in contracts judged to be at higher risk. It will take effect next month, with a six month transition period to help agencies update their systems.
Under the new approach, suppliers seeking high risk government contracts will need to show how they are identifying and reducing modern slavery risks in their operations and wider supply chains. The Government says this is part of a broader push to make procurement practices more transparent and improve oversight across the state’s spending.
The Office of the NSW Anti-slavery Commissioner has developed model clauses for agencies to use, giving them a starting point for embedding the updated requirements. Agencies will still have flexibility in how they carry out due diligence, which could include questionnaires or other assessments, as long as the expectations of the Direction are met. The reform reflects ongoing collaboration between the NSW Procurement Board and the Anti-slavery Commissioner.
The Government says this work builds on earlier changes. Those include tightening the Supplier Code of Conduct to clarify expectations around human rights, providing training to more than four thousand public sector staff, and supporting most of the recommendations made by a parliamentary inquiry into procurement. The state has also introduced tools to help agencies identify inherent risks in supply chains and has committed to a future debarment regime that would block companies involved in serious misconduct from bidding for work.
The Direction forms one part of wider procurement reforms, which also include raising the value at which small businesses can be directly engaged without a full tender and requiring government agencies to test the local market for large contracts.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said the Direction reflects the importance of using the state’s buying power to encourage ethical practices. She said the Government purchases around 40 billion dollars’ worth of goods and services each year, giving it influence over how suppliers manage the risk of exploitation. According to the Minister, job creation and ethical sourcing should go hand in hand, and the changes are aimed at supporting more sustainable, transparent supply chains.
NSW Anti-slavery Commissioner Dr James Cockayne welcomed the Direction, describing it as a practical way to help agencies apply the guidance he issued two years ago. He said making the model clauses mandatory for high risk procurement will give agencies a clearer framework for assessing suppliers, and he looks forward to continuing work with the Government on next steps.
The updated settings will begin to apply from early next year, and agencies are expected to use the transition period to adjust internal processes, speak with suppliers and ensure their procurement teams are ready for the changes.
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