NATIONAL Australia Bank has won a lucrative three-year contract to supply corporate credit card services to the Western Australian Government.
The Government will pay no fees or penalties on its cards, however the NAB will benefit from the merchant fees – a cost to retailers – from each purchase.
The Government spends about $88 million a year on its credit cards.
The news follows the announcement of an extension to the current credit card suppliers’ contracts.
The ANZ and National Australia Bank’s contracts have been extended until September 30, with American Express’s term running until December 31.
The estimated tender price for that extension is $37 million.
NAB’s contract runs from June 30, which will allow some overlap with the current credit card suppliers.
Nearly 10,000 public servants, ranging from senior ranks to purchasing officers, have been issued with government credit cards.
The Government is encouraging public servants to make greater use of credit cards, an approach endorsed by Auditor General Des Pearson in 1998.
A spokesman for Treasurer Eric Ripper said the use of credit cards made for greater transparency and also cut paperwork.
However, Opposition Leader Colin Barnett has hit out at what he called a 40 per cent blow-out in tax-payer funded credit card expenditure under the Labor Government.
Mr Barnett said he had written to Mr Pearson to bring to his attention the $15 million increase in their use during the past three years.
“There are legitimate uses for credit cards for work-related expenses and some stationery purchases, but a blow-out of $15 million in just three years looks more like a taxpayer-funded spending spree,” he said.
“This is public money and the community has a right to an explanation about what in anyone’s book is excessive expenditure.”
In response to Mr Barnett’s claims, WA Treasurer Eric Ripper accused the Opposition leader of playing “desperate politics”, pointing to the Government’s implementation of Mr Pearson’s recommendation.
He said the use of credit cards under the present Government had been extended so an increase in their use was to be expected.
