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Publications
Department of the Environment and Heritage, 2003
ISBN 0642 54955 9
The Australian Government aims to improve the implementation of Ecologically Sustainable Development (ESD) principles within Government departments and agencies. ESD is defined in Australia's National Strategy for Ecologically Sustainable Development (1992) as "using, conserving and enhancing the community's resources so that ecological processes, on which life depends, are maintained, and the total quality of life, now and in the future, can be increased." To ensure that agencies incorporate ESD in their programme, policy, legislative and operational activities, s516A of the Environment Protection and Biodiversity Conservation Act 1999 requires ESD and environmental reporting in agency Annual Reports.
As part of that effort to incorporate ESD into government operations, the Australian Government has established a Greening of Government Programme. One aspect of that Programme focuses on purchasing. Australian Government procurement policy requires that agencies, within the context of obtaining "Value for Money", take account of relevant environmental policy, legislation and Government targets in purchasing activities.
The Greening of Government Programme website includes a variety of tools to help buyers implement environmental purchasing.
Since the introduction of the Financial Management and Accountability Act 1997 (FMA Act), Chief Executives have been responsible for financial matters within their agencies, including procurement decisions. Section 44 of the FMA Act requires Chief Executives to make efficient, effective and ethical use of Australian Government resources.
The Department of Finance and Administration has responsibility for providing high-level guidance for Australian Government procurement. Value for Money is the core principle governing Australian Government procurement. This is supported by the four principles of: Efficiency and Effectiveness; Accountability and Transparency; Ethics; and Industry Development. Chief Executives are responsible for ensuring that they achieve best Value for Money in their agency's procurement decisions.
The Commonwealth Procurement Guidelines and Best Practice Guidance (CPGs) provides the procurement policy framework for FMA Act agencies. All procurement decision-making, including environmental purchasing, needs to take place within the framework provided by the CPGs. The CPGs state that the core and supporting principles "are also complemented by other Government policies." Specifically:
"Government policies, such as foreign exchange, innovation policies, industrial relations, the IT infrastructure initiative, environment, construction and indigenous policies, are a part of the framework within which agencies need to achieve Value for Money. Agencies and their officials have an obligation to conduct procurement in accordance with relevant Government policy in the way they do business." (Financial Management and Accountability Regulation 9)
Hence, energy and environmental policies are explicitly referred to in the CPGs as issues to be taken into account, where appropriate, when determining the comparative Value for Money of competing goods or services. Section Three of the CPGs provides the following guidance on environmental considerations.