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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-11-01 Daily Xml
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GOVERNMENT POSTAL SERVICES CONTRACT

The Hon. S.W. KEY (Ashford) (14:37): My question is directed to the Minister for the Public Sector. Minister, can you inform the house about the benefits and discounts that can be accessed by customers through the establishment of an across-government postal services contract?

The Hon. M.F. O'BRIEN (Napier—Minister for Finance, Minister for the Public Sector) (14:37): I am pleased to inform the house that, for the first time, a whole of government contract has been negotiated with Australia Post for the delivery of postal services, as distinct from each agency and department negotiating its own agreement. This contract will give an estimated saving to the government of $573,000 over its three-year term—

An honourable member: How much was that?

The Hon. M.F. O'BRIEN: —$573,000 over its three-year term with a total expenditure estimated at $44.1 million, which is a very large amount. As part of the new contract, agencies will have access to the maximum available discount for Australia Post's optional services.

Members interjecting:

The SPEAKER: Order! There is too much background noise. If members want to chat, please go outside of the chamber. Minister.

The Hon. M.F. O'BRIEN: The services include parcel and courier deliveries, international mail and print post for publications. The new arrangements mean that, for the first time, all 600-plus South Australian government account holders will have access to the best possible rates available from Australia Post, no matter how small their individual expenditures may be. In addition, agency customers will have improved access to Australia Post's publicly available bulk mail discounts. The contract also secures improvements to existing payment procedures imposed by Australia Post, and most members in the house would be aware of those and the issues that they were causing for electorate offices; we have dealt with those. This will ultimately assist agencies to maximise value for money in the settlement of accounts.

This new arrangement proves the value of Shared Services and the centralised model for contract negotiation. As I earlier noted, agencies previously negotiated their own service contracts with Australia Post and lacked combined buying power to secure the best possible deal. This is just one of a number of contracts which have been negotiated by Shared Services. Recently I know they have brought substantial cost savings to government.

The house may recall the recent travel expenditure reduction which achieved $891,000 in savings for airfares, accommodation and car hire over the six-month period from January to June 2012, compared with the same period last year. In the most recent three-month period, the savings are in excess of $500,000 from June to September (the figures have just come through to me) compared with the previous period last year, so we have achieved a 10.1 per cent savings in travel expenses in the last three months.

In addition, the new across-government stationery contract will deliver an estimated saving to the government of $5.36 million over the initial three-year term of that particular contract. I informed the house of the new across-government stationery contract on 5 September so it was surprising to hear the mock surprise and feigned outrage from the member for Unley this week—a contract that saves taxpayers' money and prevents fraud. I might add that the new contract was the outcome of a rigorous and—

The SPEAKER: Order! Point of order.

Mr MARSHALL: Point of order: he has not broken stride in this—

The SPEAKER: I do not know what clock you are using but I have 59 seconds left on the clock. I know time flies for you but he still has 59 seconds. Minister.

The Hon. M.F. O'BRIEN: I might add—

Members interjecting:

The SPEAKER: Order!

The Hon. M.F. O'BRIEN: —the new contract to which I referred—

Members interjecting:

The SPEAKER: Order!

The Hon. M.F. O'BRIEN: The new contract to which I referred was the outcome of a rigorous and prudentially certified tender process contested by eight South Australian located bidders. The contract for postal services highlights another example of the government's continued efforts to identify opportunities to maximise value for money and improve operational processes.

Members interjecting:

The SPEAKER: Order!

Mr Marshall interjecting:

The SPEAKER: You can take it from the internet if you want to, deputy leader, but according to that there, he had 26 seconds left.

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