Government drives fleet competition, saves NSW taxpayers $1B
Announcement posted by Smartgroup Pty Ltd 04 Apr 2016
The state government’s recent appointment of external fleet providers is already fostering the competition it’s counting on to bring about the billion dollar savings pledged to taxpayers, with agencies negotiating with the two appointed fleet managers.
In his statement announcing the appointment, Minister Dominic Perrottet said, “our new fleet model frees up hundreds of millions of dollars each year that is currently tied up in owning and maintaining a massive car fleet – I want to see that money put to better use.”
Smartfleet’s Dave Adler says the competition is good for everyone. “Of course taxpayers will benefit with savings going into services and infrastructure. But we have the opportunity here to create real efficiencies in the day-to-day running of these vehicles which directly impacts the work of the departments and employees who rely on them to simply get the job done.
“At the moment, government agencies are engaging with both providers to decide on the service offering that will deliver the best outcomes for them. We’re confident we have the capability and flexibility to meet those needs.”
Talks about a possible restructure began in 2014 when the state commissioned PricewaterhouseCoopers (PwC) to review its fleet operations, then managed by government agency, Statefleet. The government adopted PwC’s recommendations and announced a tender in August 2015.
This particular model separates the management and financing of the state’s fleet, with two fleet managers appointed to deliver best-in-industry services to government agencies; while a panel of six leasing companies compete for individual vehicle leases.
“The private sector thrives on competition,” Mr Perrottet said, “and under our new model these providers will drive down the Government’s costs and allow agencies to access best practice in fleet management, which means a better service for government, and better value for taxpayers.”
Mr Perrottet says Statefleet will be wound down and the new cost-saving model will take effect on 1 July.