❓ A WA parliamentary question seeks clarification on Western Power's claim that consultant expenditure led to significant operating cost reductions. The Minister supports the claim and provides a breakdown of cost reduction actions.
AnsweredQoN 1338Legislative Assembly
QuestionView source ↗
(1) Does the Minister support the claim by Western Power that the expenditure of $5,398,132 on consultants in 2012–2013 (Deloitte: $1,484,525.06, Ernst & Young $3,913,607.30) directly yielded operating cost reductions of $25.5 million in 2012–2013? (2) Will the Minister provide a breakdown of these operating cost reductions in 2012–2013?
AnswerView source ↗
Answered
3 December 2013
Responded by
Minister for Energy
Response time
35 days
Answer
(1) Based upon the advice provided to me by Western Power, yes, I support Western Power's claim that this expenditure directly contributed to it achieving operating cost reductions of $25.5 million during the year.
(2) A range of cost reduction actions have been taken across the business including:
· Increased efficiency in delivering the works program through a combination of less headcount, consolidating roles, freezing recruitment and the removal of long term embedded contractors;
· Lower expenditure on associated HR programs such as training;
· Lower expenditure on consultants and maximising the use of the technical capability within the business;
· Conscious reduction in travel, entertainment and executive expenditure;
· Lower expenditure on corporate communications and sponsorship programs;
· Reduced levels of planned and unplanned operating expenditure due to improved maintenance and inspection programs; and
· Improved governance and controls to ensure appropriate levels of expenditure are incurred in scoping and planning on capital projects.
(1) Based upon the advice provided to me by Western Power, yes, I support Western Power's claim that this expenditure directly contributed to it achieving operating cost reductions of $25.5 million during the year.
(2) A range of cost reduction actions have been taken across the business including:
· Increased efficiency in delivering the works program through a combination of less headcount, consolidating roles, freezing recruitment and the removal of long term embedded contractors;
· Lower expenditure on associated HR programs such as training;
· Lower expenditure on consultants and maximising the use of the technical capability within the business;
· Conscious reduction in travel, entertainment and executive expenditure;
· Lower expenditure on corporate communications and sponsorship programs;
· Reduced levels of planned and unplanned operating expenditure due to improved maintenance and inspection programs; and
· Improved governance and controls to ensure appropriate levels of expenditure are incurred in scoping and planning on capital projects.
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