Treasurer encourages wider use of purchasing cards

30/8/06
Treasurer Eric Ripper has instructed the Department of Treasury and Finance to work with other agencies to encourage the greater use of Government purchasing cards.
"As recently stated by the Auditor General, purchasing cards provide an important way of saving on the transaction costs of low value buying," Mr Ripper said today.
"A benchmarking survey undertaken in Australia in late 2005, found that by using purchasing cards, organisations could save between $19 and $52 per transaction, depending on the degree of process automation in their existing practices.
"Even at the low end of these transaction savings, by increasing the number of purchasing cards being used across government, significant efficiency savings can be achieved.
"This can translate into public servants spending less time processing requisitions, purchase orders, invoices and payment cheques, and more time on service delivery."
Also the present common use arrangement for the provision of Government purchasing cards involves no card issuing fees, no annual fees, no interest payable, and limited liability for unauthorised transactions in the event of a card being stolen.
The Treasurer said there were many myths and negative perceptions about the use of Government purchasing cards that were simply not valid.
"The reality is that purchasing cards can significantly improve levels of transparency and accountability," he said.
"Individual card-holders are held accountable for every purchase made, and various limits on card usage, approval processes and vetting of monthly statements are applied."
Another key benefit is that under the terms of the purchasing card contract, business and suppliers to Government are paid within 48 hours of a transaction.
"With many small businesses operating on tight margins in highly competitive markets, maintaining a steady cash flow is often critical to their survival and prosperity," Mr Ripper said.
Treasurer's office - 9222 8788