The way Dubbo Regional Council evaluates local businesses for goods and services "just doesn't stack up", says mayor Ben Shields.
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Council is in the process of review its Community Support Based Procurement Policy.
Currently, when council is assessing a quote or tender from a local business, two per cent of the price is deducted when comparing it to other non-local businesses. The "cheapest" quote or tender is selected.
The process is used for any goods, materials or services between $5000 and $1,000,000.
But, Cr Shields says it's not enough.
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He's started a review of the procurement policy to make it easier for businesses from Dubbo and Wellington to be chosen.
"We've got this local purchasing policy, but in my mind it just doesn't stack up," Cr Shields said.
"It needs to go a lot harder when it comes to making sure local businesses are given the support they need."
With recent promotions like the Buy From the Bush campaign and council's own #buylocalorbyelocal, the mayor said the community was "expecting" council to support local businesses.
"There's no doubt in the last few months firstly the drought, and now even the fires down south, has really focused the community's expectations on government agencies - whether it be state, federal or local - to back our local players in the field," Cr Shields said.
Council will undertake a review of the current policy in the coming months, including speaking to business owners.
Cr Shields said he was particularly keen to hear what the businesses' experiences were when dealing with council, and how it could be made easier.
Councillor Dayne Gumley said the review was "well overdue". Anything to support the community, and small businesses which were the "backbone of the economy" was a good place for council to start, he said.
Cr Gumley said he was surprised previous councilors, especially those with small business backgrounds, hadn't given local suppliers more weight.
But the councillor admitted there had to be a balance.
"At the end of the day it's not council's money, it's ratepayers money and while I understand that ratepayers will have an appetite to support locals, they'll also expect council to be responsible with their money," he said.
A report on how the Community Support Based Procurement Policy should be adapted will be presented at the July Dubbo Regional Council meeting.