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Legislative Assembly for the ACT: 2018 Week 07 Hansard (Thursday, 2 August 2018) . . Page.. 2693 ..

(d) Pool fleet vehicles are not allocated to Directorates through a centralised allocation process. Rather, Directorates determine their upcoming fleet requirements, and vehicles are sourced through a co-ordinated process.

The Territory has introduced an annual bulk order process whereby all passenger and light commercial vehicles with leases expiring in the upcoming financial year are identified by sgfleet. A matrix of vehicles representing value for money across different vehicle sectors (e.g. small, medium, large passenger vehicles) is also produced by sgfleet. This matrix is based on a similar recommended vehicle listing prepared by sgfleet for the Commonwealth, and is customised to meet specific Territory requirements. Directorates indicate which replacement vehicles they require to be delivered in the upcoming financial year, and sgfleet places orders with manufacturers. Directorates are being encouraged to cut back on overall vehicle numbers, particularly through non-replacement of low kilometre vehicles.

Allocation of vehicles within Directorates occurs at the Directorate level. Work groups within Directorates develop a case for allocation of one or more vehicles. Directorate executives approve proposed vehicles for each bulk order.

(e) Vehicles leased under the Fleet Services Contract (FSC) are disposed of by sgfleet, with a profit share applying where the price received for a vehicle exceeds previously calculated residual value. The Territory recoups funds under this profit share arrangement.

(3) It is not anticipated that the electric vehicles will be purchased. Rather, the current intention is that they will be leased in accordance with the Territory’s FSC participation. Chief Minister, Treasury and Economic Development Directorate contract manages the sgfleet arrangement, and is currently working with sgfleet to source large numbers of electric vehicles to meet the commitments under the Action Plan.

The Action Plan indicates that at least 50% of all newly leased ACT Government fleet passenger vehicles will be zero emissions vehicles in 2019-20 (where fit for purpose). The Action Plan also provides that all newly lease ACT Government passenger fleet vehicles will be zero emissions vehicles from 2020-21 (where fit for purpose). This commitment translates to approximately 266 vehicles during the period 2019-20 to 2021-22. This figure does not allow for anticipated reductions in overall Territory passenger vehicle numbers, and for possible non-selection of electric vehicles in some cases on a fit for purpose basis.

(4) The Territory’s vehicle leases with sgfleet under the FSC are operating leases financed by the Commonwealth Bank. Passenger vehicle leases are typically taken over a 48 month period, although sgfleet may recommend a longer lease period for electric vehicles to reduce the monthly lease cost (encompassing vehicle and maintenance costs costs).

(5) As with other Territory passenger vehicles, electric vehicles will be leased under the Territory’s participation in the Commonwealth’s Fleet Services Contract.

(6) Not applicable, due to anticipated leasing of vehicles.

(7) The manufacturer cost per vehicle, to be converted into a monthly lease cost by sgfleet, will depend on the particular vehicle selected. Some electric vehicle brands

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