The NSW Government spends around $10 billion each year on procuring goods and services. Some $6 billion is spent on construction and capital equipment, with the remaining $4 billion spent on other goods and services.

The Policy Statement and Code of Practice establish a comprehensive framework to enable purchasing and procurement to assist the Government in the efficient delivery of services and ensure procurement strategies are consistent with broader government objectives for economic development, the environment and workforce development. The Policy Statement is an overarching framework for all Government procurement.

The Code of Practice underpins the policy framework by establishing the standards of behaviour for doing business with, for and by the Government. The New South Wales Government will use its purchasing power to only do business with those members of the industry who display a commitment to the principles in the Code.

I request that Ministers direct all agencies within their administrations, including Government Trading Enterprises, to adopt the Policy Statement and Code of Practice. In relation to State Owned Corporations, I would ask shareholding Ministers and Boards of State Owned Corporations to give consideration to adopting the policy framework and best practice principles where they are consistent with their commercial objectives and also to give consideration to incorporating the standards of behaviour and principles of the Code of Practice into their statements of corporate intent.

I also note that whilst the Olympic Roads and Transport Authority is exempted from the policy, I would still encourage the Authority to adopt the principles as far as is possible. Government Trading Enterprises may apply to the State Contracts Control Board to seek exemption from aspects of the Policy Statement on a business case basis.

The State Contracts Control Board will coordinate and monitor the implementation of the Policy Statement and Code of Practice. A Code of Tendering and implementation guidelines relating to the Code as well as guidelines to assist in implementing the Policy, will be made available directly to all agencies.

Ministers are to ensure that all agencies within their administration support the strategies and actions outlined in the Policy Statement on NSW Government Procurement. Success in implementing the Policy Statement by Government will depend on close cooperation between agencies and with industry as the need arises and I would like your full support in this endeavour.

Copies of the Policy Statement and Code of Practice have already been circulated to all government agencies and entities. Additional copies are available from the Department of Public Works and Services, McKell Building, 2-24 Rawson Place, Sydney 2000, telephone (02) 9372 9150, facsimile (02) 9372 8288, email [email protected]

Bob Carr
Premier

Issued by: Department of Public Works and Services
Contact Officer: E J Smithies
Telephone: (02) 9372 8816
Date: 26 February 1999