July 23, 1996
The Western Australian Government has introduced a new system to fund and manage the State's passenger and light commercial vehicles which will result in savings of between $8 and $10 million a year to taxpayers.
Services Minister Kevin Minson said today the Government had entered into a leasing arrangement with Sydney-based investment bankers Matrix Group Limited as facility manager, with funding provided by the Bank of Western Australia Limited and Barclay's Bank PLC for the sale and hiring back of the 10,500 fleet valued at $250 million.
"A cheque for the first payment of $86 million was presented to the Government by Matrix's managing director Mr Garrick Hawkins today," Mr Minson said.
"The Department of Contract and Management Services will manage the contract, ensuring benefits were delivered and accountability is maintained.
"Under the sale and hiring back arrangement, agencies will be provided with a simpler and more efficient fleet service.
"The new system also means better asset management practices, including timely replacement and improved vehicle selection, acquisition, maintenance and disposal procedures.
"Enhanced asset management will also provide agencies with extremely competitive and sustainable hire rates.
"Local and country dealers will not be disadvantaged by the new arrangement.
"Agencies will still have the final say in the management and composition of their fleet, in accordance with Government policy guidelines."
Mr Minson said the process to award the contract was overseen by an evaluation panel chaired by the Under Treasurer, with representatives from Treasury, the WA Treasury Corporation, the Department of Contract and Management Services, the Public Sector Management Office and the Crown Solicitor's Office.
Similar leasing arrangements have been implemented by the NSW, SA and ACT governments.
Starting in mid-1994, tenders for fleet management services were called in groups of about 1,500 vehicles. Six fleet managers were appointed to manage the Government fleet and to work with the financier to provide a fully maintained operating lease arrangement to Government.
The fleet managers are TNT Fleet Management, Lease Plan Australia Ltd, Custom Fleet, Easifleet, JMJ and NBM Fleetcare.
Media contact: Caroline Lacy 222 9595