That the Assembly takes note of the paper.

Mr Speaker, I present for the information of Members the Government's Response to the Select Committee Report on Government Contracting and Procurement Processes in the Australian Capital Territory.

Members will recall that the Legislative Assembly resolved to appoint a Select Committee on 6 May 1999. I would like to thank the Committee for the work it has completed. There were a significant number of public hearings and it produced an important Issues Paper earlier this year, which provided an opportunity for both the community and the Government to suggest ways that procurement policies and practices in the ACT could be improved.

The members of the Select Committee, Mr Stanhope, Mr Cornwell and Mr Osborne, will be aware that the Government's submission to the Committee proposed the most significant reform of procurement since Self Government. There was a significant amount of work undertaken in revision of Government contracting and purchasing guidelines prior to the Committee completing its review, much of it published in 1999. During the current year , and in light of the Sherman Report presented to this Assembly fast February, we have made further progress in this area.

My Government acknowledged in its submission to the Committee that improvement was needed. To this end, and as we outlined in our submission, we propose to introduce legislation, in the December sitting, to create and empower the ACT Government Procurement Board.

The Procurement Board will provide a high level of scrutiny and review of procurement activities in the ACT. It will be asked to specifically review procurement intentions for projects over $1 million and those contracts involving significant risks to the Territory. It will also oversight the implementation of the purchasing accreditation system, which is designed to enhance procurement skills within the ACT Government Service.

Mr Speaker, members will be aware that in recognition of the importance placed on this issue by my Government, on the 20 October 2000 resources identified in the Department of Urban Services were transferred to the Department of Treasury and Infrastructure specifically to establish and to provide Secretariat support for the Procurement Board.

Mr Speaker, we have commenced a program of reform of procurement practices within the Administration as evidenced by our actions, and we are responding positively to the recommendations of the Select Committee Report. I am very confident that we are adopting the right strategies to address the perception formed by the Committee that there is a gap between theory and practice in contracting and