Contracting for Public Services: A Review of Antipodean Experience

In this article the evolution of competitive tendering and contracting ( ctc ) policy in Australia and New Zealand is documented and evaluated. Policy implementation at Commonwealth, State and local levels in Australia is examined in some detail. This was followed by a similar analysis of the two levels of government in New Zealand. An overall appraisal of the impact of CTC on efficiency and effectiveness of service delivery is undertaken, based on disaggregated contracting surveys of State and Commonwealth government agencies as well as a wide range of other sources of information. The key findings, which are summarized in tabular form, indicate that the pace of implementation has varied widely across jurisdictions. This variability is largely a function of differences in political orientation of the governments in power, particularly in Australia. Despite these differences, the findings suggest that efficiency gains stemming from the application of ctc are substantial and widespread. Furthermore, quality of service has not, in general, been sacrificed to cost reductions. There is every indication that the current rate of progress of policy implementation is set to continue. In Australia, it may even accelerate with the onset of a national competition policy which will place competitive pressures on providers of public services.