Audit Report identifies failure to Procure adequate change

30th June 2021

The Shadow Treasurer and Shadow Minister for Small Business says the release today of the Auditor  General’s report on the temporary state procurement controls put in place as a COVID response has  highlighted another failure of the McGowan Government to get the best outcome for businesses in  Western Australia. 

“This policy was announced in May last year to great fanfare and was supported by the Opposition”  Dr Thomas said. “According to the Government it was meant to “make it easier for government  agencies to award and extend goods and services contracts with local businesses”. 

The Government stated clearly that one of their objectives was to “reduce the barriers that impede  new suppliers from having the opportunity to supply goods or services”. 

However the Auditor General has today highlighted the failings of the plan, stating that “there was  no indication that it made any material difference to reducing the barriers that impede new suppliers  from having the opportunity to supply goods or services. Nor did it maximise opportunities for local  businesses.” 

“This was a promising plan that has fallen far short of its goals, and the Government needs to  acknowledge that it should have done better” Dr Thomas said. 

“Once again the business community is underwhelmed by the support coming from the McGowan  Government. We have seen this with the slow and uncertain roll out of lockdown compensation, and  now with the inability to fulfil this basic COVID response commitment.” 

“It is also concerning that 58% of Government entities surveyed were found to have deficiencies in  their procurement controls. This applied to general procurement and not just the COVID response  policy.” 

The report was not all bad news for the Government, with the Auditor General finding that most  entities made use of the temporary changes.  

However a line in the report that reads – 

“Only 1 entity could identify that the temporary changes may have resulted in a purchase being  made locally that otherwise could have been made from a non-local supplier. Most entities (85%)  believed it resulted in either no purchases or minimal purchases being made locally that would have  otherwise been made from a non-local supplier..” 

must raise concerns.

Media contact: Dr Steve Thomas 0427 908 717