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Legislative Assembly for the ACT: 1996 Week 9 Hansard (28 August) . . Page.. 2714 ..

MR DE (continuing):

I move:

That the Assembly takes note of the paper.

On 21 September 1995, the Auditor-General's Report No. 6 of 1995, "Contract for Collection of Domestic Garbage : Non-Salary Entitlements of Senior Government Officers", was tabled in the ACT Assembly. The report presented the results of two audit reviews: To provide an independent opinion to the Legislative Assembly on whether the contract for the collection of domestic garbage using mobile garbage bins was awarded, based on a sound evaluation of the tenderers' abilities to deliver the required service, and on complete financial comparisons of costs and risks associated with each tender proposal; and to provide an independent opinion to the Legislative Assembly as to whether allowances paid and costs incurred by senior officers of government agencies and authorities were in accordance with applicable policies, guidelines and legislation and paid or incurred in the interests of the ACT Government and/or the ACT community.

The Auditor-General concluded, in respect of the review of the contract for the collection of domestic garbage, in relation to the evaluation of service delivery that the process was sound, and in relation to the financial comparison of risks and costs that the analysis performed can be considered as adequate; however, it should have been more comprehensive. Other significant issues related to the acceptance of non-conforming tenders for consideration, and leasing options not extended to Pacific Waste Management. The Auditor-General also suggested general principles in relation to tender specifications, documents and conditions, tender assessment processes, financial assessments, and cost-benefit-risk assessments. I might say, Mr Speaker, that that contract was signed by the previous Government.

In terms of the review of non-salary entitlements of senior government officers, the audit found that allowances and benefits paid to senior government officers during 1994, once again under the previous Government, were in accordance with applicable government policies, guidelines and legislation and were paid or incurred in the interests of the ACT Government and/or the ACT community. Other findings related to the first-class travel of senior executive officers, ACTEW remuneration packages for senior executive officers, frequent flier points not being fully used by agencies, guidelines for the acceptance of gifts, and ACTEW's hospitality expenditure. The Government submitted its response to the Public Accounts Committee in December 1995. The committee report, tabled in the Assembly on 18 April 1996, made recommendations in relation to drawing up tender specifications and tender documents, programs to fully utilise frequent flier points, guidelines and training relating to the acceptance of gifts by officials, and concerns about ACTEW's hospitality expenditure. The committee's recommendations and the Government's responses are detailed in the attachment.

I shall now summarise the key issues in relation to the recommendations of the Public Accounts Committee. In relation to the contract for the collection of domestic garbage, the Government agrees with the approach recommended by the Auditor-General, and endorsed by the Public Accounts Committee, that tender specifications should not be so narrowly drawn as to potentially eliminate acceptable solutions, both technical and financial, and that tender documents should be designed

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