This Memorandum is to inform all NSW Government agencies of the existence and requirements of a new Australian and New Zealand Government Procurement Agreement (ANZGPA), and the Government's policy in regard to the achievement of the objectives of the Agreement.

On 8 August 1997 at a Ministerial Council of procurement Ministers from the Australian States, Territories and Commonwealth, and the New Zealand Governments a revised Agreement relating to government procurement was signed by the Minister for Public Works and Services on behalf of NSW.

The overriding aim of the ANZGPA is to promote opportunities for Australian and New Zealand suppliers to compete for government business on the basis of value for money in a single competitive market through closer co-operation of the jurisdictions (the Parties to the Agreement) in the development of procurement policy. This aim will be achieved through providing a mechanism for co-operation by the Parties to work together to achieve the greatest possible consistency in contractual, technical, and performance standards and specifications, and simplicity and consistency in the application of procurement policies, practices and procedures.

Whilst the Agreement provides for certain government business enterprises (e.g. state owned corporations) to be excluded from the application of the provisions of the Agreement, each jurisdiction is required to apply its best endeavours to encourage a wider application of the Agreement, consistent with good commercial practice.

I therefore require all NSW Government agencies (except State Owned Corporations) to implement the principles of the Agreement. In relation to State Owned Corporations, I would urge shareholding Ministers and Boards of State Owned Corporations to give consideration to the principles of the Agreement and the possibility of incorporating them into their statements of corporate intent.

Where it is considered that the terms of the Agreement would place an undue burden on a government business the agency may apply through its respective Minister to the Minister for Public Works and Services for exemption from part, or the whole Agreement, in accordance with Clause 7 and Annex 1.

Agencies may apply for partial exemption in the terms of Annex 1 to the Agreement where terms of the Agreement would adversely affect the commercial practices or other factors relevant to the core operation of the agency. Exemption from the whole Agreement, other than for government business enterprises, requires the unanimous approval of all Parties to the ANZGPA. The Agreement provides that the exemption granted under the 1991 Government Procurement Agreement will remain in force for a period of six months from the date of signing the ANZGPA. Agencies which are currently exempted will be required to reapply to the Minister for Public Works and Services.

A copy of the Agreement together with an information paper is enclosed. Any enquiries concerning this matter may be directed to Graham Tredinnick, Principal Policy Officer, Procurement, Department of Public Works and Services, on 9372 8253.

Bob Carr
Premier