PARLIAMENTARt1 O
4> usTAA
PRIME MINISTER 13 May 1974
COMMITTEE OF INQUIRY INTO GOVERNMENT PROCUREMENT
The Prime Minister announced today that the Chairman of the
I SCccooomntcmtil, tu steiheoa nd so fw rainIdtn tqeurnie rcytoo m mienantddov aitsGieoo vnehsri. nm m eofnT th et hPePr roicCmuoerm emmMieitnnttie, se t'esSr i rm arjeWocaralltleer d
that in announcing the establishment of the Committee in
November 1973, it was foreshadowed that the Committee's
report would form the basis of a review, by Ministers, of
procurement policy. This review, he said, would be carried
out as soon as possible after receipt of the Committee's
full report which was expected shortly.
The Prime Minister said that Sir Walter had advised him that
the Committee's major conclusion was that the procurement
function as a whole had been seriously neglected, and was not
serving the Australian Government or its suppliers, as'
effectively as it should. Sir Walter said the Committee
recommended that, in order to upgrade the procurement function
to a degree commensurate with its importance to both government
I baen d esitnadbusltirsyh, e d aans Auas tcreantlriaaln Gpourvcehranmseinngt aPuutrhcohraistiyn g toC obmmeission
responsible for the co-ordination of policy, and in the course
of time, for the purchase of goods and services for all
departments with the possible exception of certain specialised
functions.
The Committee sees two major advantages from the creation of
an Australian Government Purchasing Commission. First, it
considers that such a Commission should make possible greater
efficiency and streamlining in the whole process of Government
procurement, as it saw obvious gains to be achieved in terms
of economy and efficiency of operations. Secondly, the
Committee considers the Commission could be expected to develop
an expertise and experience which would allow it to purchase
more effectively for the various Government departments for
which it would act as agent. It was thought that the Commission
should achieve the traditional objective of Government
purchasing, the " best value for money", more effectively than
the present system.
The Committee also recommended that, as soon as possible, the
proposed Commission should initiate a thorough overhaul of the
principles, rules and regulations governing the procurement
function. In the meantime, the Committee would make a number
of detailed recommbndations designed to improve the situation
immediately. In particular it would recommend that the
SGovernment overhaul its forward planning for procurement, so
that suppliers will have a better knowledge of what is required.
The Prime Minister said he had also been advised that the
Committee would be suggesting ways in which Government purchasing
may be used to further other policy aims considered desirable
by the Government. The Committee has concluded that in various
ways and in varying degrees Government purchasing can be used to
help to achieve some policy objectives; in the field of product
standards and testing; in the following of a labour employment
code; the employment of women; the employment of aborigines;
promoting regional development; furthering technological progress;
requiring pollution control; encouraging industrial efficiency;
setting standards in the field of motor vehicle safety; and
in influencing a desirable structure of industrial development
in line with Government policy and community needs.
The Committee's report will also suggest means by which
Government purchasing can be used to further the policy of
encouraging a higher level of Australian ownership and control
of industry. Q
The Prime Minister said he wished to place on record the
Government's appreciation of the valuable work done by the
Committee.