April 10, 2018

Budget Savings Through Lower Government Vehicle Costs

The Government of Saskatchewan is saving money following measures to reduce government vehicle costs.  As a result, the 2018-19 Budget amount for government’s Central Vehicle Agency is reduced by more than $5.0 million.

Some of these measures include reduction of government’s vehicle fleet, improved purchase prices and a move to private-sector rentals for short-term vehicle use.

“Government is pleased to have realized substantial savings, by taking a more strategic approach to vehicle use for government business,” Central Services Minister Ken Cheveldayoff said.  “These savings for government vehicle travel demonstrate our commitment to efficient delivery of government services.”

Over the past number of years, work was done to reduce the number of government-owned vehicles.  This included moving under-utilized vehicles to areas of government with higher vehicle needs, selling older and under-utilized vehicles, and ensuring the vehicles used match the travel requirements.

Procurement also played a role in government’s overall vehicle costs.  For new vehicles, government has saved taxpayers’ dollars by partnering with Alberta and British Columbia to purchase vehicles.  A similar approach was also taken for the purchase of items like tires and windshields.

In addition, a one-year pilot project was conducted in Saskatoon, Prince Albert and North Battleford, using private-sector short-term vehicle rentals for government business.  This resulted in $275,000 in travel savings.

Additional benefits were also realized as a result of this pilot project, including access to newer vehicles, more flexible hours of service from vehicle providers and more drop-off and pick-up locations.

Further work is underway to expand the pilot project across the province, for an estimated $400,000 in savings.  Government expects to launch the expanded service this spring.