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Legislative
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| Sandra Kanck Deputy Leader Australian Democrats Member of the Legislative Council |
Parliament Index |
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Legislative
Council |
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| Sandra Kanck Deputy Leader Australian Democrats Member of the Legislative Council |
Parliament Index |
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STATE SUPPLY DIRECTOR
The Hon. SANDRA KANCK: I seek leave to provide an explanation before asking the Minister for Information Services and Administrative Services a question about the Director of State Supply.
Leave granted.
The Hon. SANDRA KANCK: Since December last year I have been raising concerns about the government's Procurement Reform Strategy. Indeed, I stated that the procurement strategy administered by Supply SA, which is the agency responsible for procurement, was costing our health system dearly. My office calculated that an estimated $20 million was being wasted due to poor tendering and contracting practices in Group 65 medical products.
As a consequence, the Auditor-General is now conducting an investigation into the procurement practices of Supply SA, including whether it is observing the eight-point Procurement Reform Strategy released by the Department of Information and Administrative Services in May 1998. These include: value for money in the expenditure of public funds; open and fair competition; and professional integrity and probity.
On 10 December the minister answered a question asked by the Hon. John Dawkins stating that the reform strategy was on track. He stated that one of the proposals for the strategy was `to raise the degree of professionalism in procurement across the whole of government'. I have now been given information which casts further doubt over the government's Procurement Reform Strategy. I have been informed that the Director of Supply SA, Mr David Burrows, has been working `off- line' for the past six weeks subject to an investigation. My questions to the Minister are:
1. Why is the investigation taking place?
2. Who is conducting the investigation?
3. Has the Auditor-General been informed of the investigation?
4. What are the terms of the employment contract between the government and the Director of Supply SA?
5. What checks were done on Mr Burrows' employment record before he was appointed Director of Supply SA?
The Hon. R.D. LAWSON (Minister for Disability Services): The honourable member began her explanation by suggesting that, according to her, some $20 million had not been saved and that in fact additional expenditure had been incurred, notwithstanding the implementation of the Procurement Reform Strategy of the government. Contrary to that assertion, the procurement reforms have indeed yielded benefits to the state budget. I am advised that as at 30 June this year the savings realised by the Procurement Reform Strategy were of the order of $12 million, and that the anticipated savings over the life of that strategy will be achieved.
The honourable member also said in her explanation that the Auditor-General was conducting an investigation into the affairs of State Supply in so far as they relate to Group 65 medical products. That is a misstatement of the position. The Auditor- General, because of a resolution of this Council, is examining some allegations-unestablished at this stage-made by the honourable member in a speech that she made to this chamber last year.
I think it is quite wrong to suggest, as she does, that the Auditor-General of his own volition is investigating some impropriety. He is examining allegations that the honourable member made. I certainly encourage the Auditor-General to undertake that examination, notwithstanding that my advice was that the substance of most of the allegations were without foundation.
The honourable member raises questions about a particular officer, which I think is perhaps unfortunate in this place, when she alleges that certain investigations are under way. I am not prepared until I receive a report from the department to comment upon the allegations made. If there is information which I can provide to the Council in relation to this matter I will bring back a reply as soon as I am in a position to do so.
