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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-07-11 Daily Xml
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PUBLIC SERVICE PURCHASING PANEL

The Hon. M.J. WRIGHT (Lee) (15:02): My question is to Minister for—

Members interjecting:

The SPEAKER: Order!

The Hon. M.J. WRIGHT: —the Public Sector.

Members interjecting:

The SPEAKER: Order! The member for Lee.

The Hon. M.J. WRIGHT: Can the Minister for the Public Sector inform the house about how the government is making significant savings in the procurement of ITT-related goods and services?

The SPEAKER: The Minister for Finance.

Members interjecting:

The Hon. M.F. O'BRIEN (Napier—Minister for Finance, Minister for the Public Sector) (15:02): Good idea.

The SPEAKER: Order!

The Hon. M.F. O'BRIEN: You'll go far. I thank the member for Lee for the question and the very savvy business propositions that are coming across from the opposition. I am pleased to inform the house that $6 million will be saved over the next three years through the establishment of a new panel of suppliers to provide printer and multifunctional devices. Expenditure under the new panel is estimated at $50 million over the initial term, or $175 million if all extension options are exercised on the contract, spread across all suppliers. The scope of the panel includes the provision of network printers and network multifunction devices.

All South Australian government agencies are required to use these new arrangements. Five suppliers have been appointed to the panel. They are Canon Australia, Fuji Xerox Australia, Konica Minolta Business Solutions Australia, Solutions Australia and Ricoh Australia. The new arrangements will deliver an estimated average of 24 per cent price per unit reduction for multifunction devices and a 33 per cent price per unit reduction for printers over prices paid under the previous panel arrangements. The new arrangements will see an estimated 20 per cent reduction in per page costs on new devices purchased when compared with current average prices.

Based on these price reductions, it is expected that the South Australian government will save approximately $2 million per annum compared with current arrangements. The estimated average number of units to be purchased each year across all segments is 2,470. The panel arrangement will ensure ongoing competitive pricing to South Australian government agencies for the purchase of network printers and multifunction devices and fixed minimum percentage discounts off retail prices for all categories of equipment and consumables.

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