“StateFleet, the agency who administers the government’s fleet vehicles, has reformed the way that vehicles are sold once they’ve become surplus to requirements or not fit for purpose,” Mr Perrottet said.
“Previously, ex-government vehicles were sold to the private market through several separate auctioneers; we’ve now changed this to just one, Pickles Auctions.
“This move will help to generate savings by reducing the amount paid for fees and other charges, and using a sole agency will mean there is more consistency in administration and reporting.”
Mr Perrottet said the new savings came on top of savings that had already been made by StateFleet.
“Since 2011, the NSW Government has made annual savings of up to $14 million by removing surplus vehicles from StateFleet and better managing the retention of fleet vehicles,” he said.
“The public should not have to be burdened with excessive costs of providing public servants with cars, and following a strategic review of the state’s fleet we’ve been able to reduce the size of our fleet by more 1400 vehicles over the last few years.
“Now the vehicle disposal arrangements with Pickles Auctions have come into effect, StateFleet will be saving up to $16 million each year.
“This is money that can be reinvested back into providing essential services like health, education and transport.
“The NSW Government is committed to make greater savings for taxpayers and we are achieving this by reducing duplication and removing the red tape across government.”
In November, the NSW Government issued a tender for suppliers to sell surplus or disposed of fleet vehicles. Pickles Auctions were chosen as a sole supplier following a competitive tendering process.
StateFleet manage leases and contracts for more than 20,000 vehicles used by public servants.