In August 2015 the Minister for Finance, Services and Property, Dominic Perrottet, announced the NSW Government is moving to a new model to manage the state’s car fleet that will free up around $1 billion in capital over the next four years.
Mr Perrottet said the new arrangements include competitive sourcing from the private sector and leveraging the collaboration economy.
“Today (28th August) the NSW Government spends hundreds of millions of dollars buying, owning and maintaining one of the biggest car fleets in the country,” he said. “I’d like to see this capital freed up and invested in frontline services and productive infrastructure.”
“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 over 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 Government shouldn’t be competing with the private sector for fleet leasing and management services,” Mr Perrottet said “This arrangement will be more cost effective, increase competition and allow government to access best practice in fleet management.”
The Minister also announced the government will roll out car-sharing in metro areas, following the success of a recent trial. The 3 month trial was undertaken at Department of Finance, Services and Innovation (DFSI) offices using Goget and Hertz24/7 share-cars.
Staff who participated in the car-share trial reported a high degree of satisfaction, enjoyed not having to fill in log books and were able to use share cars located near their homes.
“We should be looking use these new economy services wherever it is feasible and practical,” said Mr Perrottet. “Car sharing is flexible, cost effective and convenient.”
CEO of GoGet Carshare Tristan Sender said the success of the trial showed the NSW state government can save money by carsharing.
“We hope their lead on this will result in carshare being rolled out across all departments, delivering benefits for the taxpayer,” he said.
Hertz Asia Pacific Vice President Chris Rusden said Hertz was delighted to work closely with the NSW Government to provide smart, short-term, car sharing options.
“We’re pleased we helped the NSW Government assess the feasibility of car sharing and we look forward to working closely together in the future,” he said.
The NSW Government will shortly commence negotiations with shortlisted suppliers for the new state fleet supply model.