MICE next on govt cost-cutting agenda

GOVERNMENT is going
to realign the way it does
MICE, just as it did with
corporate travel.
Early last year, government
had entered into direct
talks with travel suppliers
by negotiating nett rates
on domestic air and land
arrangements.
“Government spend on
corporate travel alone was
sitting at R10bn when we
began the realignment
of corporate travel. We
knew that MICE was one
of the highest spending
commodities in government
as well, but we gave priority
to corporate travel with the
intention of tackling MICE
thereafter,” said Phale
Naake, deputy director of
fleet and travel management
services at the Department
of Labour, at a recent GBTA
SA workshop.
National Treasury has
instructed government
departments to attempt to
organise events, workshops
and conferences in-house
first, before outsourcing the
function – and even then,
they would need to get
approval first.
“The heads of
departments of State-owned
entities are mandated to
approve such applications
after careful consideration,”
said Phale.
While he could not give
TNW further details on
the changes that MICE
professionals could expect
when doing business
with government, Phale
said: “When we did the
cost analysis during the
realignment of corporate
travel, we realised that
middle men and women are
adding to the cost – and in
the drive to cut costs, those
who are adding to the cost
will need to be cut.”
That said, though,
government would not want
to expose itself to the risk
of poor service or shady
work that compromised
the integrity of government,
Phale added.