Lindsay Tanner says no to 'Buy Australian'

Finance Minister Lindsay Tanner has suggested the union movement's "Buy Australian" push at this month's ALP national conference is overblown, saying the Rudd government already buys locally made goods wherever possible.

Mr Tanner and Innovation Minister Kim Carr are in talks with senior union officials about a compromise deal to be put to the conference that will toughen rules on local industry participation in major projects without breaching Australia's international trade obligations.

But Mr Tanner flatly rejected the NSW Labor government's protectionist approach of giving local producers a 20 per cent price advantage -- an approach the union movement is demanding they emulate nationally.

Mr Tanner told The Australian yesterday: "The vast bulk of government purchasing is already spent on Australian products and most of the imports are products that are not manufactured here, like photocopiers or fighter jets."

He said the government was "in discussion with the trade union movement" about ways to improve the opportunities for Australian companies to compete but "remains resolutely committed to non-discriminatory procurement policies and does not support the NSW government's approach".

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