In the latest development of "Buy American"-like protectionist policies aimed at economic recovery that are more likely to harm both local and foreign business, The Australian reports that the New South Wales government is seeking to ensure local companies are prefered recipients of new government contracts.

The paper states that this new policy would set Australia's least-competitive and most-indebted State on the road fo "financial ruin".  This new policy is also completely at odds with recent comments made by Foreign Minister Stephen Smith, "Australia very strongly believes that the way to get through difficult economic times is by promoting access to each other's markets, not by retreating to protectionism".