In this article the evolution of competitive tendering and contracting
(CTC) policy in Australia and New Zealand is documented and evaluated
. Policy implementation at Commonwealth, State and local levels in Aus
tralia is examined in some detail. This was followed by a similar anal
ysis of the two levels of government in New Zealand. An overall apprai
sal of the impact of CTC on efficiency and effectiveness of service de
livery is undertaken, based on disaggregated contracting surveys of St
ate and Commonwealth government agencies as well as a wide range of ot
her sources of information. The key findings, which are summarized in
tabular form, indicate that the pace of implementation has varied wide
ly across jurisdictions. This variability is largely a function of dif
ferences in political orientation of the governments in power, particu
larly in Australia. Despite these differences, the findings suggest th
at efficiency gains stemming from the application of cre are substanti
al and widespread. Furthermore, quality of service has not, in general
, been sacrificed to cost reductions. There is every indication that t
he current rate of progress of policy implementation is set to continu
e. In Australia, it may even accelerate with the onset of a national c
ompetition policy which will place competitive pressures on providers
of public services.