Opposition asks about the business case and savings projections related to the privatisation of Homeswest repairs and maintenance. The government admits no business case was prepared and savings are not yet realised due to implementation issues.

AnsweredQoN 60Legislative Council
Asked
20 March 2012
Portfolio
Housing

QuestionView source ↗

HOMESWEST — REPAIRS AND MAINTENANCE —
PRIVATISATION
60. Hon SUE ELLERY to the minister representing the
Minister for Housing:
Given that in a media statement
dated 6 June 2010 the then Minister for Housing stated that the contracting out
of repairs and maintenance of public housing would deliver cost savings of more
than $20 million over three years —
(1) Was a
business case ever prepared by the Department of Treasury and Finance to assess
the likely savings as a result of this decision; and, if yes, will the minister
table it, who prepared it and how much did it cost?
(2) On what basis was the claim to
save more than $20 million over three years made?
(3) Will these savings be met; and,
if not, why not, and what will be the estimated savings?

AnswerView source ↗

I thank the honourable member for
some notice of the question. I have received an answer to convey to the Leader
of the Opposition. The Department of Housing advises —
(1) No.
(2) Anticipated
savings were based on zone percentages tendered by contractors compared with
the previous contracts.
(3) Although estimated
savings have not yet been achieved due to implementation issues, the government
believes that over time savings will be made.

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