September 18, 1996
Services Minister Kevin Minson today outlined to Parliament the Western Australian Government's overhaul of public sector purchasing.
Mr Minson said that where purchasing was once seen as a low priority, statutory function within government, its role was now recognised as a key element of the Government's commitment to sound economic management.
"The Buying Wisely policy document means the Government purchasing function has now completed its journey from the back room to the boardroom," he said.
"Buying Wisely presents significant opportunities to create an intelligent and effective pool of buying expertise combined with active contract management.
"It also means there is now one consistent set of rules for purchasing across the public sector with the State Supply Commission acting as both educator and umpire."
Four key principles form the cornerstone for the new policy and include:
· integrity - ensuring the purchasing role is undertaken with high standards of probity, ethics and professional conduct within an accountable process;
· competition - providing and sustaining open and effective competition and developing a competitive market for Government requirements, while assisting local industry;
· intelligent buying - providing information, guidance and education to develop buyers who are skilful, informed, innovative and discerning in managing the public purse; and -
· active contract management - actively managing contracts to achieve the best value for money by working co-operatively with industry and fostering continuous improvement and quality.
Mr Minson said Buying Wisely was not simply a cost-driven policy.
"It establishes a framework for Government agencies to make intelligent buying decisions," he said.
"This involves taking into account the effect of those decisions on the marketplace and any social impact those decisions may have on the community."
Mr Minson said CEOs would now be required to assess any significant impact purchasing decisions might have on local businesses and the flow-on effect to local, State or regional economies.
"Clearly, not enough emphasis has been placed on these areas in the past and we are determined to see this does not happen again and that local industry is utilised wherever possible," he said.
"The Government is committed to achieving a totally new approach to purchasing which prioritises not only value for money and quality, but is conscious of integrity, accountability and the future benefits for all Western Australians."
Media contact: Caroline Lacy 222 9211 or pager 016 981795
