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Tuesday, 4 February 2003
Page: 8466


Senator O'Brien asked the Minister representing the Minister for Agriculture, Fisheries and Forestry, upon notice, on 18 November 2002:

(1) Is it the case that the provisions of the Chief Executive's Instruction relating to procurement require departmental purchases over $100 000 to be subject to public tender.

(2) Is it the case that the public tender requirement is subject to exemptions; if so, can details of the exemption guidelines be provided.

(3) How many purchases over $100 000 in the 2001-02 financial year were exempted from the public tender guidelines.

(4) Did the Minister and/or his office have any involvement in the exemption of any purchases from public tender guidelines in the 2001-02 financial year?


Senator Ian Macdonald (Minister for Fisheries, Forestry and Conservation) —The Minister for Agriculture, Fisheries and Forestry has provided the following answer to the honourable senator's question:

(1) and (2) The Commonwealth Department of Agriculture Fisheries and Forestry's (AFFA) Chief Executive Instruction relating to procurement of goods and/or services for expenditure $100,000 and above, states:

When procuring goods and/or services for expenditure $100,000 and above, (including GST), employees must adhere to the following:

· decide on the procurement process based on which option represents the most efficient and effective use of public monies. Purchases over $100,000 should be made via open public tender.

· where businesses decide that open tender is not the optimal approach, a Deputy Secretary or Executive Director must approve procurement method (eg select tender or direct engagement on the basis that the market has already been tested or it is the only entity with skills etc).

(3) 33

(4) No