South Australian taxpayers being ‘ripped off from dud Fleet SA repair deals with interstate-based firms’

An SA MP has told parliament locals have been mysteriously “black-listed” from contracts as SA taxpayer money goes interstate to do a job that could be cheaper here.

• True cost: SA government’s $277m consultant bill revealed

South Australian taxpayers are getting “ripped off” when footing bills for broken government car windscreens amid a new row over official contractor use, parliament has been told.

The state government coughs up more than $3.2m a day to hire “outside help” through consultants or contractors while almost 50 firms annually cashed in by more than $1m last year.

But as the state’s peak business group called for such spending to be ploughed into tax reform, a new row erupted over agency contractor spending.

A parliamentary committee heard claims that Fleet SA, which manages all state government vehicles, has told local repair shops to “use a more expensive preferred glass windscreen repairer that comes from interstate”.

Upper House independent MP, Frank Pangallo, said taxpayers were “actually getting ripped off” by decisions of the SA Financing Authority, a Treasury division that controls Fleet SA.

Treasury chief executive, Rick Persse, would investigate the claims, the Legislative Council’s Budget and Finance Committee heard.

Mr Pangallo told the hearing the government had mysteriously black-listed a local business, Complete Windscreens, which former Crows star Stephen Rowe owns.

Instead, the government’s “preferred” supplier, Dutch multinational company LeasePlan, used more expensive repair shops O’Brien and Instant windscreens.

Mr Pangallo said “non-approved” local companies “will end up being infinitely cheaper and give value to taxpayers”.

Frank Pangallo MLC at Parliament House. Picture: NCA NewsWire/Emma Brasier

The FIVEAA sports show with Rowey and Timmy G hosts Stephen Rowe and Tim Ginever. Picture: 5AA

Costs could be up to half price especially for “emergency same-day glass repairs”, he said.

Outside parliament, he said the “grossly unfair” Fleet SA scheme must be changed.

“The ‘dud deal’ (is) not only a blatant abuse of taxpayers’ money but (is) also robbing local businesses of valuable work in favour of interstate-based companies,” he said.

Inner northern suburbs-based Complete Windscreens, founded in 1976, is not on the government’s “preferred” repair list despite being RAA approved, MPs heard.

It has asked to be put on but has been rejected for undisclosed reasons, Mr Pangallo claimed.

Mr Rowe, a FIVEAA radio presenter, 58, bought the Main North Road, Prospect, business in December 2022. He said operations were thriving.

“I’d like to think the state government would look at its processes and how it spends taxpayers’ money by giving priority to SA businesses and not harming them,” he said.

“I don’t even want their business – I just want them not to tell our clients to not use us.”

Mr Persse told MPs Treasury was “not an agency that is uninterested” in saving money.

“You are going to be pushing on an open door (at) the Department of Treasury and Finance, and everyone who works within it, who is looking for value for taxpayers’ money,” he said.

A Treasury spokeswoman had no update while none of the windscreen businesses commented.

On Wednesday, South Australian Business Chamber chief executive officer, Andrew Kay, said the “government clearly is well placed to spend, bolstered by increased revenues from payroll tax and stamp duty”.