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Legislative Assembly for the ACT: 2000 Week 8 Hansard (29 August) . . Page.. 2515 ..

MR STANHOPE (continuing):

fairness, the committee is concerned that the government has still not established the office of probity adviser it foreshadowed last December.

The committee acknowledges that ensuring that value for money is achieved is one of the most difficult tasks in the tender and contract process. Nevertheless, it is also one of the most important tasks of that process. The committee does not believe ACT government agencies are meeting the requirement to achieve value for money, nor do they have any method of assessing whether the value for money objective is achieved.

The committee heard claims that there is a widespread belief in the private sector that the lowest priced tender is too often judged to represent value for money. This situation is directly relevant to the committee's view that government agencies need to be informed buyers. The committee recommends that a two-envelope tendering system be developed to ensure that price does not outweigh other important factors in the judgment of tenders.

Mr Speaker, the committee believes that there is an essential need for change in the way in which the ACT government and its agencies undertake contracting and procurement. It has made 27 recommendations arising out of its inquiries. We believe they point the way to the development of a better procurement process within the ACT government and, just as importantly, that their adoption will also promote the development of a purchasing culture that delivers efficiency, fairness and openness.

It is particularly pleasing to report that the work of the committee has already been a catalyst for change. For instance, in the government's response to the committee's issues paper, the Minister for Urban Services acknowledged the need to ensure access to purchasing expertise. He foreshadowed initiatives to establish a system of accreditation of procurement competencies among relevant government officers.

Through the minister's response, the government has also given in-principle support for the creation of a government procurement board, an initiative the committee welcomes, subject to the proviso that the membership of such a board should be drawn from senior representatives of government departments and agencies. The committee recognises that change is ongoing and looks forward to further positive responses to its recommendations.

I acknowledge concerns about the Bruce Stadium redevelopment as an important factor in the establishment of the committee. The redevelopment project was a critical case study undertaken by the committee and one that consumed much of our deliberations. Issues around the consideration and eventual public release of hirer agreements between the government and major tenants of the stadium were central to a consideration of openness and the role of commercial confidentiality in government contracting.

The committee decided to release the agreements after careful consideration of the views of the parties and various legal advice. Notwithstanding representations to the committee by parties seeking to maintain the confidential nature of the agreements, the committee was of the view that those arguments were overridden by the principles of transparent and accountable government. In the event, the committee has not been made aware of any adverse outcomes for the parties involved following release of the contracts.

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