Senator GIBSON(3.23 p.m.) —Thank you, Madam Deputy President.

Senator Carr —Welcome back.

Senator GIBSON —Thank you. I rise to respond to Senator Lundy's question earlier about the IT outsourcing. Let us look at the history of all this: why is the government endeavouring to improve efficiency of the operation of the administration of government? Because the Labor Party left us with a mess. The other side were the group that raised taxes by 30 per cent in the last four years of their government, sold off $9 billion worth of silver, increased borrowings by $70 billion and left us with a mess. We are cleaning up the mess and part of that is by greatly improving the efficiency of the operations of the Australian Public Service.

As part of that, we are continuing a process which the Labor government started of outsourcing the IT works within the government, except that we are doing it in a more comprehensive way, but the design was basically set in your day. Tenders were called for the first group of contracts for the veterans' affairs department. As Senator Lundy knows, this matter about the history of what happened and how there was nothing improper done has been well and truly canvassed during Senate estimates—over and over again.

As Senator Murphy knows, I am in favour of strong competition but, because there was an opportunity to piggyback on this particular contract with the Department of Finance, the government decided to go ahead with it and save many millions of dollars rather than wait for a considerable period before the next opportunity to go with another cluster. In the interests of the poor battling taxpayers of Australia, the government made a decision to go ahead with this particular contract and to add Finance into the contract—it was in the original design of the contract to allow that to happen. But that really is only a minor affair. The greater affair is the design for the rest of the Commonwealth IT work.

I am sure Senator Lundy would agree with me that the design of calling competitive tenders for those clusters—and, as Minister Fahey said, including encouraging Australian firms to be part of the tender process—is the right way for us to go.

Senator Lundy —Not necessarily.

Senator GIBSON —Because they are large jobs. Firms have been encouraged to get together and to put in competitive tenders for that process. I am certain that the taxpayers are getting good value for their money. The government is heading down the correct path for this process.