Petroleum Bill

Extract from Hansard

Legislative Council
24 October 2001

Sandra Kanck
Deputy Leader Australian Democrats
Member of the Legislative Council

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The Hon. SANDRA KANCK: I seek leave to make a brief explanation before asking the Minister for Administrative and Information Services a question about the State Supply Board.

The Hon. SANDRA KANCK: In December 1998 I raised concerns about the processes of the State Supply Board and the failure to achieve best procurement practices as outlined in the document of May 1998 entitled `Purchasing Strategically'. Nearly three years later, the Auditor-General's Report reveals inadequacies and concerns regarding the implementation of policies and procedures. At page 131 of the Audit Overview, the Auditor-General states:

The Board has not to date formally issued detailed instructive guidance to agencies concerning best practice procurement policies and procedures, nor has it issued formal instructive advice to agencies as to what those policies and procedures might comprise.

. . . no comprehensive whole-of-government policies and procedures (as to the conduct of procurement processes, structured and focused on each step in the procurement cycle process) have been developed at the government agency level. It can be said that in most cases agencies have only advanced marginally beyond the high level policy framework material published by the Board.

Deficient conduct or execution of procurement processes can cause government and agencies to fall short of the guiding principles that underpin procurement reform.

1. Why have procurement agencies failed to receive detailed instructive guidance on best procurement practice since May 1998?

2. Given the fact that agencies have failed to receive whole of government policy and guidelines regarding procurement, does the minister agree that these agencies have fallen short of the guidelines outlined in the May 1998 document `Purchasing Strategically'?

3. Having fallen short of the guidelines, have these agencies failed to save the estimated $80 million outlined in the procurement reform in 1998?

4. Will the minister commission an external consulting firm to independently review government purchasing arrangements as suggested in the Auditor-General's Report?

The Hon. R.D. LAWSON (Minister for Administrative and Information Services): I think it is a matter for regret that the honourable member did not continue in her reading of the Auditor-General's Report to note that the chairperson of the State Supply Board responded-and, to use the Auditor- General's language, `in a positive manner'-to the concerns expressed by the Auditor-General. The Chair of the board indicated, and I think this is worth putting on the record:

Firstly, since the commencement of the procurement reform program major emphasis has been placed on providing agencies with skills and knowledge to undertake effective processes. Secondly, policy and procedural development has been occurring within agencies. The board does recognise the need to move beyond providing agencies with mainly high level policy to that of providing clear leadership and procurement improvement, including the development of best practice guidelines and a more detailed set of procedural instructions. Thirdly, the board established in March of this year a dedicated resource unit to assist in procurement leadership and improvement initiatives. Fourthly, the board is to review published material of other states as part of its current process of developing best practice procurement guides. Roll-out of guides in a phased way is anticipated from November of this year.

So the matters referred to by the honourable member are under close examination of the State Supply Board, as part of an ongoing process of improving the processes of our procurement. The honourable member asks whether the government has given consideration to engaging an external consulting firm to review government purchasing arrangements, something that had occurred elsewhere, in particular in Victoria. I do not propose to engage external consultants at this juncture. I will wait upon the report from the State Supply Board of the steps which it is currently taking to ensure that our procurement reforms deliver appropriate results for the community.