Hon Anne Tolley

Minister for Social Development

27 November 2014 Media Statement

MSD procurement a winner

Social Development Minister Anne Tolley says preferred supplier agreements for whiteware and optical goods and services are proving a huge winner for beneficiaries, low income people and the taxpayer.

As part of the government’s welfare reforms the Ministry of Social Development is contracting with preferred suppliers and delivering brand new quality whiteware and optical goods and services at a much cheaper price for low income people who borrow the money from MSD.

“The optical deal in particular has resulted in massive savings for 6,185 low income people needing spectacles. Prior to May 2014, people were borrowing more than $500 for new glasses but are now getting them for just over $200.

“That’s brilliant - particularly for superannunitants who in the past have paid on average around $570 for new glasses. New processes have also made it more convenient with people no longer needing to get multiple quotes,” says Mrs Tolley.

Since May last year, beneficiaries and low income people have also been able to loan money to buy Fisher and Paykel appliances that come with two year warranties, free delivery and installation and removal of the old appliance.

People are paying on average about $70 less for whiteware that comes with a fuller range of services. To date 22,621 people have benefited from the deal.

“As well as delivering better quality goods and services at a lower cost for individuals, the supplier deals will also help in reducing crown debt by a target of $26 million by 2019.

“The success of MSD’s procurement programme has been recognised internationally with it winning an award from the Chartered Institute of Procurement and Supply (CIPS) Australasia Awards,” says Mrs Tolley.

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