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  • Bruce Flegg for Moggill
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Government pays $50 million to "cartel"

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Monday, 19 July 2010 09:20

Dr Bruce Flegg MP
Shadow Minister for Education and Training
Member for Moggill

16 July 2010

Government pays $50 million to "cartel"

The State Government has paid $50 million in "fees" to eight large building companies by allowing all eight to negotiate the $50 million set fee together, the LNP said today.

Shadow Minister for Education and Training Dr Bruce Flegg said this is despite the fact the Australian Consumer and Competition Commission (ACCC) had issued warnings to governments that cartels existed when suppliers of services to government worked together to fix pricing at a certain level.

"When asked at the Education Estimates Committee, Minister Wilson was unable to explain why big building firms were not required to competitively bid for such a large amount of fees," Dr Flegg said.

"Whilst the Minister might get a little precious and attack the Opposition for raising concerns about waste of money, he certainly isn’t about to answer any questions himself.

It is extraordinary that we would be paying this sort of money to eight firms without requiring them to compete for the business."