RESTRICTED  
  
GPA/ACC/AUS/33  
 
19 June 2017  
(17-3262) Page: 1/4 
Committee on Government Procurement  Original: English  
 
ACCESSION OF AUSTRAL IA TO THE AGREEMENT ON GOVERNMENT PROCUR EMENT  
COMMUNICATION FROM A USTRALIA  
The following communication, dated 16 June 2017, is being circulated a t the request of the 
Delegation  of Australia.  
 
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AUSTRALIA'S RESPONSE  TO KOREA'S COMMENTS (GPA/ACC/AUS/28)  
ON AUSTRALIA'S REVIS ED OFFER  
Australia thanks Korea for the submission of comments and requests for improvements 
(GPA/ACC/AUS/28), based on Australia's revised offer (GPA/ACC/AUS/17). Australia pro vides the 
following responses to the questions circulated by Korea.  
 
Annex 1 – Central Government Entities  
 
1. The number of covered entities in Annex 1 has decreased from 65 to 63. Therefore, 
the Republic of Korea requests that Australia either include all c entral procurement 
entities or demonstrate that the scope of the coverage in Annex 1 has not technically 
changed.  
Two entities were removed from Australia 's initial offer, to reflect changes made to machinery of 
government, namely CrimTrac Agency and Famil y Court & Federal Circuit Court.  The CrimTrac 
Agency has been merged with the Australian Crime Commission to form the Australian Criminal 
Intelligence Commission, which is listed.  From 1 July 2016, corporate services, including 
procurement, for the Family Court & Federal Circuit Court have been provided by the Federal Court 
of Australia, which is listed.  Accordingly, the scope of coverage of Annex 1 has not changed.  We 
note that Australia's second revised offer (GPA/ACC/AUS/29) includes two additional entit ies – the 
Australian Transport Safely Bureau in Annex 1 and Old Parliament House in Annex 3.  
 
2. Regarding Note 2, Korea requests that Australia delete the exception on the 
procurement of motor vehicles not only in Annex 1 but also in Annexes 2 and 3.  
In Aust ralia's second revised offer (GPA/ACC/AUS/29) , the exception on the procurement of motor 
vehicles has been removed from Annex 1 and Annex 3, with effect from 1 January 2019.  We had 
previously removed the exception for some sub -central governments in Annex 2. This sector 
remains highly sensitive for Australia.  
 
Annex 2 – Sub-Central Government Entities  
 
3. Korea would make an inquiry as to why Australia did not cover city -level 
procurement. Furthermore, Korea requests that Australia include city -level procureme nt 
in its future offer.  
While we are not able to offer local government, our market access offer is still very 
comprehensive and ambitious with around 90% of government procurement undertaken at the 
Commonwealth and state and territory levels.  The exclusio n of city -level procurement is consistent GPA/ACC/AUS/33  
 
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  with Australia 's existing trade commitments.  Australia has never made commitments at the local 
government level, given their large number, small size and nature of local councils.  
4. Korea requests that Australia cove r the utility services in the Australia Capital 
Territory. If Australia will not cover the aforementioned utility services, please provide 
the reason why Australia will not cover the utility services in the Australia Capital 
Territory and a detailed list o f the utility services that are not covered.  
Australia, through a negative list approach, has offered ambitious and comprehensive coverage of 
services. The exclusion of the aforementioned utility services is required for the Australian Capital 
Territory (A CT) to be able to provide this overall high level of coverage of services, and entities.  
 
Australia has gone through 30 years of divestment and/or privatisation of public assets, including 
most utility assets. Generally, utilities have been privatised (or on long -term leases to the private 
sector) or are government corporations operating on a commercial basis. This means that state 
and territory governments do not directly control the procurement decisions of such utilities, with 
their procurement decisions  undertaken in accordance with commercial considerations, and outside 
government procurement frameworks.  
 
Specifically to utility services in the ACT (population less than 400,000), the exclusion refers to 
utilities services as defined in the Utilities Act  2000 (ACT), Utilities (Technical Regulation) Act 2014 
(ACT) and the Utilities (Telecommunications Installations) Act 2001 (ACT).  Most of these services 
are provided by Icon Water Limited (a government corporation) and ActewAGL (a joint venture 
between Ico n Water Limited and private companies).  The ACT Government does not control the 
procurement decisions of these organisations, which are undertaken in accordance with 
commercial considerations.  
 
 Under the Utilities Act 2000 (ACT) "utilities services " are de fined to include electricity 
services (section 6, includes distribution, connection, transmission, capacity to generate 
30MW or more of power connected to an electricity network), gas services (section 9, 
includes transmission, distribution and connection) , water services (section 11, includes 
collection or treatment for distribution, making a water network available for the 
provision of water connection, distribution, connection and supply), sewerage services 
(section 13, includes making a sewerage network  available for the provision of sewerage 
connection, connection and sewerage service), and prescribed utility services (section 
15, includes related or ancillary services to those above or complementary to the 
operation of utility service, as prescribed by  the regulations).  
 Under the Utilities (Technical Regulation) Act 2014 (ACT) a "regulated utility service " 
includes the utility services above, as well as small or medium scale electrical 
generation, the supply of electricity or gas from a network to premi ses, owning, leasing 
or subleasing a registrable dam, the provision of a district energy service and a 
regulated utility service prescribed under section 10 (section 9 of the act).  
 Under the Utilities (Telecommunications Installations) Act 2001 (ACT) a "utility network 
facility " means a network facility under the Utilities Act 2000.  
5. Regarding the Northern Territory, can Australia provide the reason why the 
number of the covered entities in the Northern Territory has decreased from 39 to 26? 
Also, please ens ure that the scope of the coverage in the Northern Territory has not 
changed.  
The changes to the Northern Territory list reflect changes to the machinery of government since 
the initial offer was made.  There is no change in the scope of c overage, all of th e original 
39 entities are still covered (many have been merged since a recent election).  The Attachment at 
the end of this document explains where the entities on the original list are cover ed under the new 
arrangements.  
 GPA/ACC/AUS/33  
 
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  6. Korea requests that Australia delete Note 2 since the Note makes the scope of the 
coverage ambiguous and unpredictable due to the fact that each country has a different 
regional government structure.  
Note 2 has been deleted.  
 
Annex 7 – General Notes  
 
7. With respect to Note 1.a., Korea is  of the view that the expression "any form of 
preference" is unclear and broad in its meaning so that the Note can allow any kind of 
measures taken by Australian authorities to benefit small and medium enterprises. Such 
an expression hinders predictability  and transparency of Note 1.a. Korea requests that 
Australia provide the measures currently taken to benefit small and medium enterprises, 
identify the scope of the SME measures allowed in Annex 7 and guarantee that the 
measures will be taken in a manner t hat is non -discriminatory to non -Australian small 
and medium enterprises.  
The inclusion of the SME N ote is essential for all Australian governments, which recognise the 
important contribution small and medium enterprises (SMEs) make to the economy and 
employment in particular. For this reason, Australian governments seek to ensure that Australian 
SMEs have the same opportunities to participate in procurement processes as large companies and 
international businesses. SME participation schemes aim to assist c ompetitive Australian SMEs to 
participate in projects by encouraging innovation, expansion of capability and investment 
opportunities.  
 
The Note does not stop foreign companies from winning contr acts in Australia. The N ote on SMEs 
is consistent with Austra lia's existing trade agreements and is not as broad as similar N otes of 
other GPA members.  
 
8. With regard to Note 2.b., can Australia provide the data related to this kind of 
procurement (for example, the amount of procurement done in this kind of procuremen t 
against the total amount of procurement)?  
As procurement from another government entity is not considered a procurement, statistics on 
such activity are not collected.  
 
9. Korea notes that the purpose of Note 2.c. can be achieved through Article III of 
the General and Security Exceptions in the Agreement. Please either delete this Note or 
provide an explanation and a justification for the Note if such a Note is different from 
Article III of the General and Security Exception in the Agreement.  
Australia has d eleted this Note, on the basis that Article III of the revised GPA addresses the 
essential security exception.  
 
10. Regarding Note 2.d., Korea finds no precedents similar to this Note. Can Australia 
provide an explanation as to why such a Note is needed and ho w this Note will be 
implemented in the future?  
Australia requires flexibility to specify the location of data storage and hosting services where 
there is a legitimate reason to do so, such as privacy or security requirements. For example, the 
Australian Go vernment holds personal data in Australia, in accordance with legislation such as the 
Privacy Act 1988, which regulates the handling of personal information about individuals.  
 
Australia is not seeking to prevent suppliers from other Parties from providing  data storage and 
related services to Australia, but is seeking that such services be provided in Australia when 
government data is involved.  
 
 
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  GPA/ACC/AUS/33  
 
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  ATTACHMENT  
Northern Territory – changes of government machinery  
 
Entities in Revised Offer  Entities in Original Offer  
1. Aboriginal Areas Protection Authority  1. Aboriginal Areas Protection Authority  
2. Auditor General's Office  2. Auditor General's Office  
3. Department of the Attorney -General and 
Justice  8. Department of Correctional Services  
18. Department of the Attorney -General and 
Justice  
28. Northern Territory Licensing Commission  
4. Department of the Chief Minister  19. Department of the Chief Minister  
5. Department of Environment and Natural 
Resou rces 12. Department of Lands, Planning and the 
Environment  
6. Department of Housing and Community 
Development  7. Department of Community Services  
10. Department of Housing  
13. Department of Local Government and 
Regions  
7. Department of Health  3. Central  Australian Hospital Network  
9. Department of Health  
36. Top End Hospital Network  
8. Department of the Legislative Assembly  20. Department of the Legislative Assembly  
9. Department of Primary Industry and 
Resources  11. Department of Land Resource Management  
14. Department of Mines and Energy  
15. Department of Primary Industry and 
Fisheries  
10. Department of Tourism and Culture  4. Department of Arts and Museums  
16. Department of Sport and Recreation and 
Racing  
31. Parks and Wildlife Commission of t he 
Northern Territory  
37. Tourism NT  
11. Department of Trade, Business and 
Innovation  5. Department of Business  
12. Department of Treasury and Finance  17. Department of Treasury and Finance  
13. Health and Community Services Complaints 
Commission  21. Health and Community Services Complaints 
Commission  
14. Museum and Art Gallery of the Northern 
Territory  23. Museum and Art Galleries Board  
15. Land Development Corporation  22. Land Development Corporation  
16. Northern Territory Electoral Commission  24. Northern Territory Electoral Commission  
17. Northern Territory Police, Fire and 
Emergency Services  25. Northern Territory Emergency Service  
27. Northern Territory Fire and Rescue Service  
32. Police Force of the Northern Territory  
18. Northern Territory Training Commission  26. Northern Territory Employment and Training 
Authority  
19. Office of the Commissioner for Public 
Employment  29. Office of the Commissioner for Public 
Employment  
20. Ombudsman's Office  30. Ombudsman's Office  
21. Racing Commission  33. Racing Commission  
22. Remuneration Tribunal  34. Remuneration Tribunal  
23. Strehlow Research Centre  35. Strehlow Research Centre Board  
24. Territory Families  6. Department of Children and Families  
25. Utilities Commission of the Northern 
Territory  38. Utilities Commission of the Northern 
Territory  
26. Work Health Authority  39. Work Health Authority  
 
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