Media release – Michael Ferguson, Treasurer, 7 June 2022
Local firms winning more contracts than ever before
The Tasmanian Liberal Government is supporting local businesses to create jobs and stimulate the economy to deliver growth.
Our Buy Local Policy aims to increase opportunities for local suppliers to compete for government business.
In the year to 31 March 2022, Tasmanian businesses were awarded $482.5 million worth of contracts valued at $50,000 or more.
Pleasingly, Tasmanian businesses were able to win 86.2 per cent of contracts valued at $50,000 or more following an open procurement process.
These results demonstrate Tasmanian businesses have a high success rate when competing for Tasmanian Government contracts, with local small to medium businesses winning Government work in record numbers.
The Government will continue to support Tasmanian businesses and provide opportunities for businesses to effectively compete for Government business.
This is a positive outcome for local jobs and the Tasmanian economy and continues the Government’s focus on strengthening Tasmania’s future and delivering for all Tasmanians.
Rebecca White MP, Labor Leader, Shadow Infrastructure Minister, 7 June 2022
Mystery about end of bus contract
Infrastructure Minister and Treasurer Michael Ferguson has confirmed the cancellation of a significant contact and promise by the Liberal Government to build and deliver a new bus fleet in Tasmania.
Mr Ferguson confirmed the contract between Metro and BusTech for the delivery of 26 new buses built in Wynyard has ended with just eight buses delivered.
Crucially, while Mr Ferguson today told Estimates Hearings the government remained committed to the procurement of the additional 18 buses to fulfil his promise to add an extra 26 buses to the fleet, he could not say if the vehicles would be manufactured in Tasmania.
In December 2020 Mr Ferguson announced the 26 new buses would be added to the Metro fleet only to today confirm the cancellation of the deal.
Correspondence from the CEO of Metro states:
“BusTech was engaged to supply an additional 26 buses however due to problems relating to the fulfilment of the contract, Metro has decided to end the agreement and seek alternative sources for its future bus fleet.”
Mr Ferguson was unable to explain what issues had brought the end of the contract but the clear question is: As Minister in charge of the deal, has he been completely hands-off or does he not want Tasmanians to understand what went wrong?
David O’Byrne MP, Member for Franklin, 7 June 2022
Single ticketing shambles drags on
The government’s replacement to the antiquated Greencard system announced in 2018 is still no closer to completion, as Budget Estimates reveal the cost has quadrupled and the project will seemingly be outsourced to another jurisdiction.
Franklin MP David O’Byrne said Minister Michael Ferguson had completely fumbled the important project, pointing out that after 5 years and several funding announcements the project was still no closer to completion.
“This government have nothing to show for the 5 years they’ve been working on this project, other than a deceptive Minister,” said Mr O’Byrne.
“Meanwhile, commuters are stuck with the old Greencard system for the next few years, despite being assured a new ticketing system would be completed by last year.
“The budget papers say $19.6m will be spent to finalise the project, but the Treasurer today said the total cost was around $31.5m. What we do know is that the project will cost tens of millions more than expected, but we still don’t know when it will be delivered.
“When I pressed the Premier about this issue in December last year during GBE Scrutiny hearings, they admitted that only $100,000 had been spent on the project to date, but that work would soon be under way.
“Less than six months later, it now appears they’ve decided they want to pay some other state or jurisdiction to do the work they claim to have done over the last 5 years, but have provided no detail nor clarity around the status of the project.
“It appears as though this project is stuck in the underground bus mall.
“This is an extraordinary admission of failure from this Minister and this government. Meanwhile, Metro and Derwent Ferry commuters are stuck with one of the worst ticketing systems in the country.
“They’ve even pulled the line item for the single ticketing scheme out of the budget papers, perhaps because they feel a bit embarrassed by it.”
