Australian schools fleeced as red tape leads to waste

An investigation by The Australian has found wastage in education departments is not isolated to the $16.2 billion schools stimulus building program. Public schools are being overcharged for products from projectors and calculators to refrigerators.

The problem appears worst in NSW, where the state government collects a fee of up to 2.5 per cent on all items purchased by government departments - and public schools - through its Smartbuy procurement program.

A survey by The Australian has found many products offered through Smartbuy can be bought on the open market for less than those prices offered through the government scheme. When asked about the widespread cost differences, the NSW Department of Services Technology and Administration, which operates Smartbuy for all state government departments, said it was unable to comment on "commercial decisions made by individual suppliers.

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