Question Without Notice No. 523 asked in the Legislative Council on 27 June 2018 by Hon Tjorn Sibma
Parliament: 40 Session: 1
GOVERNMENT DEPARTMENTS — ADVERTISING
523. Hon TJORN SIBMA to the minister representing the Minister for Finance:
This question was redirected to the minister. I refer to government expenditure on advertising.
(1) What is the value of the tender for government media booking, buying and planning services for advertising—common user agreement MBBP2018—which will take effect from 1 July 2018?
(2) What is the allocated expenditure by government for each year of the contract until 30 June 2021?
(3) To whom was the tender awarded and does the firm or firms have an eastern states headquarters?
Hon STEPHEN DAWSON replied:
I thank the honourable member for some notice of the question.
(1) The total contract award value is estimated to be $300 million, including GST, over the potential five-year term of the contract.
(2) Historically, only 55 per cent, or $165 million, of the contract expenditure has been by government. This is expected to reduce in future, consistent with the government's commitment to reduce advertising by $20 million per annum. Information on forecast annual expenditure is not available, as the estimated contract value is based on past use only.
(3) The tender was awarded to Carat Australia Media Services Pty Ltd, which has its headquarters located in Melbourne, with a local office in Perth; and Initiative Media Australia Pty Ltd, which has its Australian headquarters located in Sydney, with a local office in Perth.