The minister for finance, services and property, Dominic Perrottet, has revealed that the NSW Government is moving to a new model to manage the state’s car fleet. According to him, this move will free up around $1 billion in capital over the next four years.
Perrottet said the new arrangements include competitive sourcing from the private sector and leveraging the collaboration economy.
“Today the NSW Government spends hundreds of millions of dollars buying, owning and maintaining one of the biggest car fleets in the country. I’d like to see this capital freed up and invested in frontline services and productive infrastructure,” he said.
“Our new fleet management model features a diversity of supply options that will improve service quality, make use of car-sharing and drive value for taxpayer money.”
StateFleet currently includes more than 22,000 passenger and light commercial vehicles at an annual cost to taxpayers of around $240 million.
Rather than a single government-owned fleet, the new model will see a fleet manager engaged by each agency who will deal directly with a separate panel of vehicle leasing companies. The existing fleet will be wound down over time.
The Government accepted recommendations from a 2014 PricewaterhouseCoopers review that competition should be introduced in fleet leasing and management services, and a trial of car-sharing services conducted as an alternative to government pool cars.
The Minister also announced the government will roll out car-sharing in metro areas, following the success of a recent trial. The three month trial was undertaken at Department of Finance, Services and Innovation (DFSI) offices using Goget and Hertz24/7 share-cars.
The NSW Government will shortly commence negotiations with shortlisted suppliers for the new state fleet supply model.