Page 2769 - Week 10 - Tuesday, 14 August 1990

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those. To try to suggest that the Government has managed the public works contracting in the ACT improperly is something which I think needs to be clarified and clarified now. I am pleased that the matter has been raised because it provides me with a useful opportunity to set the matter straight concerning the ACT works contracting system, something which I think Mr Connolly demonstrated in his extended tirade that he clearly does not understand.

Unlike the previous Government, this Government has announced a government purchasing policy which extends to contracts. It requires that in purchasing goods and services we achieve the best value for money and do not necessarily accept the lowest tender. Of course, that brings a smile to Mr Connolly's face, but that is the truth.

This policy also aims to ensure fairness and equality of opportunity to businesses supplying services to the Government. Tenders are called for all works worth over $50,000. The Government's contracting procedures and contract forms are similar to those that have been used by public works authorities around Australia for many years. These conditions were developed by the national public works conference in close consultation with industry, and have proved to be a sound basis for public works contracts, not, as Mr Connolly was trying to imply, a series of shambles. The system is very well organised. While public works organisations throughout Australia and industry generally have been concerned about the level of contractual dispute in the industry, there has been general acceptance of the general conditions of contract which form the basis of the legal contract in their present form. In particular, there has been no criticism of those conditions which specifically relate to the failure of companies.

Mr Acting Speaker, the Government has a specialist group in my public works department dedicated to arranging contracts to ensure that they are put in place fairly and that they are properly checked. It also provides for maximum flexibility in handling the boom-bust patterns of the construction industry which, of course, are well known, and which unfortunately are going to be with us for ever and a day. It is the very nature of the industry that in good times there are many people operating. When times get tough, unfortunately people drop out of the industry and some fingers get burnt. That is the nature of the industry.

That specialist group also ensures control of quality and value for money for the taxpayer, and the cost-effectiveness of every dollar spent on construction in the ACT. It protects and fosters new contractors and ensures contracts are given to contractors capable of handling them. It maximises responsiveness to government decisions, to implement quickly and efficiently new initiatives. It offers a service to government agencies and thus ensures competent advice at the early conceptual stages of a


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