NSW government to overhaul procurement policy

Small businesses can expect a bigger slice of more than $12 billion worth of annual contracts with the NSW government under big changes to procurement policy.

The reforms, along with a discussion paper, will decentralise decision-making on procurement of goods and services, giving more power to individual agencies.

NSW Finance Minister Greg Pearce has vowed to slash the "unnecessary bureaucratic overlay and red tape" that blocked many small-to-medium enterprises seeking a foothold in government business in NSW.

The changes will result in the immediate abolition of the State Contracts Board, which currently directly administers contracts worth $3.8 billion out of a total annual government spend of $12.7 billion on goods and services.

The board will be replaced by a NSW Government Procurement Board, chaired by Finance Department boss Michael Coutts-Trotter and comprising the chief executives of key government departments.

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