Wellington, Oct 28 NZPA - Changes to better coordinate procurement across Government departments are expected to save $20 million in the 2010-11 year.

The Government announced in June it would set up centres of expertise (COE) to better coordinate buying equipment, remove duplication and save money.

Initial changes focused on purchase of work place equipment including computers, stationery and cars.

Over 2010-11 $183.8 million was to be spent on those areas: $58m on IT; $18.5m on equipment; $68m on vehicles and $39.3m on stationery.

Economic Development Minister Gerry Brownlee said the Internal Affairs Department would host the first COE, responsible for establishing all of government contracts for IT equipment.

The Economic Development Ministry would establish a second COE responsible for all contracts for vehicles and stationery.

The first contracts were expected to be in place by June 2010.

"By consolidating expenditure and leading contract negotiations on behalf of the state sector these COEs are expected to achieve significant cost savings," Mr Brownlee said.

"In other jurisdictions an all of government approach to procurement has returned, on average, 5 to 10 percent cost savings."

The Government intends to roll out COEs in other areas in future to reduce its $30b a year procurement spend.

The state sector alone comprised 30 percent of the economy and the Government was the largest single purchaser in a number of domestic markets.

NZPA PAR mt kn