Government claims outsourcing saves NSW $1bn

The NSW Government’s recent appointment of external fleet providers will deliver $1 billion in taxpayer savings, according to claims.

In a statement announcing the appointment, Minister for Finance, Services and Property 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.”

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 competes for individual vehicle leases.  

“The private sector thrives on competition,” 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.”

Perrottet says Statefleet will be wound down and the new cost-saving model will take effect on 1 July.