EXPLANATORY STATEMENT

 

Select Legislative Instrument 2007 No. 148

 

Productivity Commission Act 1998

 

Productivity Commission Amendment Regulations 2007 (No. 1)

 

The Productivity Commission Act 1998 (the Act) provides under subsection 45(4) that if the estimated value of a consultancy exceeds the amount prescribed by the regulations, the Chair must ensure that an open, competitive tendering process is used in selecting the consultant.

 

Section 60 of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

The Regulations amend the mandatory open tender threshold for engaging consultants as set out in the Productivity Commission Regulations 1998.

 

The Regulations reflect the mandatory open tender threshold for Financial Management and Accountability Act 1997 agencies as set out in the Commonwealth Procurement Guidelines – January 2005 of $80,000.

 

The Regulations assist the Productivity Commission in its operational requirement to engage consultants when specific skills, expertise or independent advice is required by ensuring that relatively minor consultancy contracts are not required to be put to an open tender process. This enables the Productivity Commission to procure such services in an efficient and effective manner.

 

No consultations were conducted in relation to these Regulations as the amendments were considered not to have relevant implications for any external agencies or other bodies.

 

The Regulations commenced on the day after they were registered on the Federal Register of Legislative Instruments.