Coalition backbencher David Gillespie has called on public servants to buy more Australian-made paper after he calculated the economy had missed out on millions of dollars in revenue.
His views on the issue are similar to those held by the Construction, Forestry, Mining and Energy Union, which has released a list of "guilty" departments "hurting" Australian jobs.
These included the Australian Taxation Office and Department of Foreign Affairs and Trade as well as the Department of Finance, which oversees procurement across the bureaucracy.
Fifteen of the 22 largest federal departments bought their paper from Indonesia or Europe because it cost about 5 per cent less than locally-made paper.
Dr Gillespie said in return, Australia had foregone jobs, pay-as-you-go tax, Medicare levies, company tax and GST, which could be worth up to 40 cents for every dollar spent.
"Decisions on huge government purchases appear to have been made within their own departmental silo, without costs or benefits to Treasury or social security being assessed," the Nationals MP said.
"For every ream of paper they produce locally, the government gets an immediate return of $1.81," he said.
"All across the country, returns in taxes from local production [of paper] amount to $430 million annually."
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While Dr Gillespie noted the company was owned by Nippon Paper, incorporated in Japan, he said it had a strong Australian presence, which should be taken into account during government procurement for all goods.
"It is critical when you are purchasing $40 billion worth of goods and services with third-party funds," he said.
Federal procurement rules ask public servants to strive for value for money but it has been a constantly debated phrase.
Often it can be seen as buying from the cheapest bidder.
"Recently an Australian boot manufacturer [Rossi] was one of several unsuccessful in a government tender eventually awarded to a company importing boots produced and assembled overseas," he said.
"How ironic and sad that the same bootmaker has subsequently applied for federal government assistance in retraining and transitional programs similar to those announced to allay some effects of loss of automotive industry employment.
"The Indonesian company producing the goods was marginally cheaper but then again they should as they were not required to comply with Australian [occupational health and safety] laws, environmental regulations, industrial relations laws and high Australian federal and state taxes, compulsory superannuation, or high electricity costs.
"Too often government departments are ignorant to or do not calculate the impact of long-term embedded government regulation standards and taxes that function as reverse tariffs as the competitors of domestic companies are excused compliance with them."
The federal bureaucracy has been reducing operating costs, mostly because of the efficiency dividend, which forces departments to continually find savings.
But procurement officers usually only have a short-term financial saving as a performance indicator, rather than the benefit a particular contractor would provide the Australian economy.
The push to clarify the value for money definition within procurement rules to protect local industries has a variety of supporters across the community such as Kennedy MP Bob Katter, Labor ACT senator Kate Lundy, the Canberra Business Council and the CFMEU.
CFMEU pulp and paper workers district federal secretary Alex Millar said it was a dark time for Australian paper manufacturers.
"We've seen the announcement of one mill closure in NSW - now the [Australian Paper-owned] Maryvale mill in Gippsland has signalled it is in strife, and must take some painful measures to remain viable," he said.
