State Supply Commission reform to deliver increased efficiency

Portfolio: Treasurer

Treasurer Troy Buswell today announced a plan to merge the State Supply Commission into the Department of Treasury and Finance, as part of the Liberal-National Governments drive to increase the efficiency of the public sector.

The need for a small, independent commission to oversee and regulate public sector purchasing has diminished considerably as a result of the procurement reforms implemented over the past few years, Mr Buswell said. Maintaining a small agency of 13 people and carrying the associated corporate overheads represents an unsustainable cost.

The public sector has changed considerably since the commission was established in 1991, particularly in recent years as a whole-of-government approach was adopted in relation to procurement. This leadership role will continue to strengthen and we expect efficiency improvements through having a single body responsible for the strategic management and oversight of public sector procurement. We recognise that on some occasions, independence may be required from Treasury when handling a supplier complaint or when a review is needed. I am confident that the existing accountability and investigative mechanisms that exist through bodies such as the Ombudsmans Office; Office of the Auditor General; Public Sector Standards Commission and the Corruption and Crime Commission, collectively provide ample opportunity for review and redress.

The Treasurer said that implementation of the change would commence immediately. All staff and resources will be transferred to Treasury and the commission will revert to a board until such time as the State Supply Commission Act can be repealed, he said.

As part of the changes, a high level industry consultative group involving key industry representative bodies will be established to bring trends and issues to the State Governments attention and to provide input into procurement policy. Mr Buswell said that the merger would achieve full year savings of about $1million per year.

Treasurer's office - 9222 9111

Original Media Statement: http://www.mediastatements.wa.gov.au/Pages/default.aspx?ItemId=131564&