Mr GREG PIPER (Lake Macquarie) (16:22): I support the Local Jobs First Bill 2026 as amended by the Legislative Council. There is strong alignment on the need for this reform, and it is little secret why. The people of New South Wales are heartily sick of seeing governments spend money on major public works and services, only to see that investment go offshore and fail to deliver on quality. They would much rather see those contracts awarded to local businesses, which would create jobs, retain skills and support communities across the State. The electorate of Lake Macquarie possesses a highly skilled workforce thanks to its history of mining and power generation, as well as its proximity to educational institutions, including the University of Newcastle and TAFE. I am sure the member for Cessnock, who I note is in the chair, is well aware of what I am talking about.
However, with the declining demand for coal and the closure of Eraring Power Station in 2029, we are on the cusp of change. There is a real risk we will lose the skills of our workers in coal- and manufacturing-related jobs if new industries that utilise this expertise do not turn up. It goes without saying that that would have a cascading and devastating impact on the local community. Advanced manufacturing would appear to be a natural fit for the skilled workers living and working in Lake Macquarie. However, for this investment to eventuate, we need the Government to strategically intervene and collaborate with industry and employers. I believe the Government's introduction of this bill demonstrates a meaningful commitment to local manufacturers and small and medium businesses, which is particularly important to my community at a time when we face economic uncertainty linked to the energy transition. I note the Minister is at the table. I know he is well aware of the situation; we have similar challenges in the regions we represent.
In the Lake Macquarie local government area, around 97 per cent of all businesses are small businesses employing fewer than 20 people. According to the NSW Small Business Commissioner, small businesses across New South Wales employ 1.7 million people, pay $80.8 billion in annual wages and salaries, and generate $570.6 billion in annual sales and service income. These numbers show that small businesses are a driving force of the New South Wales and regional economies. But they are also so much more than that—they are the backbone of our communities. They employ locals, keep money local and help our kids stay local. Their contribution to the social fabric of our regions cannot be understated. Small businesses need support to work on government projects, which offer them stability, credibility and growth.
Under the bill, the local content and worker requirements for New South Wales government procurement will be laid out in the Minister's procurement policy. For the Government to deliver on its commitment to manufacturers, businesses and workers, the plan must incorporate strong requirements for local content and workers, including learning workers. It must incentivise hyper-local procurement so that businesses within a close proximity of a project benefit. Finally, it must target procurement requirements at the right level of the supply chain to ensure that larger businesses with the capacity and technical expertise to tender for government work can engage smaller businesses without the same resources. That is vital for small businesses to receive the intended benefit of this bill.
For small businesses in Lake Macquarie and the Hunter, the detail in the procurement policy is where we will really see the rubber hit the road with this reform. I know the Government consulted heavily on the development of the bill, and I urge the Minister to keep engaging with industry and other key stakeholders on the regulations and policy. I believe the amendments agreed to in the Legislative Council strengthen the bill. In particular, those Government amendments which narrowed the definition of "local" to New South Wales and other Australian jurisdictions demonstrate that the legislative intent of the bill is to benefit New South Wales businesses while not falling foul of the Constitution. The Greens amendments to improve transparency and accountability, including in relation to authorisation decisions, and to provide for parliamentary review also improve the proposed legislative framework.
Finally, for Lake Macquarie and other communities in coal regions, a conversation around local jobs cannot be had without discussion of future jobs. Both local and future jobs concern the stability, diversification and sustainability of regional economies, as well as the futures of local families and communities. The bill, along with the Government's Future Jobs and Investment Bill 2025—which has been stalled in the Legislative Council for far too long—will help strengthen not only our regional supply chains and economies but also our skilled workforce and State manufacturing capacity. That is why I support this bill, and I implore the Legislative Council to pass the Future Jobs and Investment Bill 2025 as a priority. I thank the Minister for introducing the bill. I also acknowledge and thank Dantia, the economic development arm of Lake Macquarie City Council, and the council itself for their feedback and assistance on this matter. I thank the House.