Mr Redman questions the Water Minister about the decision to insource services from the Perth Region Alliance (PRA), focusing on cost benefits, employee transitions, and potential break costs. The Minister's response outlines cost savings, employee arrangements, and a smooth transition.

AnsweredQoN 5798Legislative Assembly
Asked
26 November 2019
Portfolio
Water

QuestionView source ↗

I refer to the decision to in-source services provided by the Perth Region Alliance (PRA), and ask: (a) Can the Minister articulate where the predicted expected annual net cost benefit of $2-3m will come from; (b) How many employees currently work in the Perth Region Alliance: (i) Of those how many will come across to the Water Corporation with the changes; and (ii) Of those how many will be made redundant; (c) Did the Water Corporation or the Government incur any ‘break costs’ from the PRA contract: (i) If not why not; and (ii) If yes, what were the costs; (d) Given the PRA agreement was expected to run to June 2022 under current terms, what consideration has been given to private parties to the Alliance in the circumstances of the early break of the agreement; and (e) Can the Minister outline the expected ‘one off’ costs of the ‘process’ of insourcing the Alliance services?

AnswerView source ↗

Answered
11 February 2020
Responded by
Minister for Water
Response time
4 days
(a) The forecast net cost benefit of $2-3m is principally achieved through the avoidance of margin payments to Programmed Facilities Management.
(b) There are currently 319 employees in the Perth Region Alliance.
(i) All employees will be offered employment with the Water Corporation except the 1 employee directly employed by Programmed Facilities Management.
(ii) None.
(c) There are no “break costs” to the Water Corporation or the Government.
(i) The Water Corporation and Programmed Facilities Management have agreed to end the contract through an orderly transition approach.
(d) The Water Corporation and Programmed Facilities Management have agreed to end the contract through an orderly transition approach.
(e) The transition process is currently underway and is largely supported by existing resources within the Water Corporation.  Any additional once-off costs associated with the transition are expected to be relatively minor.

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