Labor welcomes the ACCC investigation into Telstra’s alleged tactic of using contractual provisions to make captive, or lock in, its clients.
If this tactic were applied to public sector agencies, it would run counter to the Federal Government’s stated purchasing policy.
Put simply, if federal departments and agencies were to permit Telstra to ‘capture’ them by contractually empowering Telstra with an effective veto on discussions with Telstra’s competitors, it would mean that the stated principles in the guidelines were being ignored.
The news report in today’s Australian Financial Review paints a picture of Telstra as a company that is not willing to compete for work on the basis of ‘value for money’ and is attempting to leverage their market dominance during contractual negotiations to keep the work.
The Federal Government has a duty to taxpayers to ensure that it stands up to such tactics, however, there is no evidence that the Coalition is willing to do so.
I call on the Government to come clean with respect to its own contracts with Telstra and other big companies and prove that the guidelines are being enforced, rather than sit back and wait for the outcome ACCC inquiry.
If the Government is unwilling to act, I hope the ACCC will.
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The Commonwealth Procurement Guidelines state that: |
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“Value for money is the core principle governing Commonwealth procurement. This core principle is underpinned by four supporting principles: |
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Efficiency and Effectiveness; |
Media contact: Jason Ives on (02) 6277 3334 or 0411 237 683
