SENATOR KATY GALLAGHER
SHADOW MINISTER FOR FINANCE
SHADOW MINISTER FOR THE PUBLIC SERVICE
SENATOR FOR THE AUSTRALIAN CAPITAL TERRITORY
 
JULIAN HILL MP
DEPUTY CHAIR OF THE JOINT COMMITTEE ON PUBLIC ACCOUNTS AND AUDIT
MEMBER FOR BRUCE
 

A new report by the Australian National Audit Office (ANAO) confirms a huge cost blowout in spending on consultancy contracts to outsource government work over the past financial year.
 
The Australian Government Procurement Contract Reporting Update – tabled in Parliament yesterday, reveals just eight consulting firms netted around $1.1 billion in consulting contracts in 2018-19 which is double what these firms got in 2013-14 when the Coalition Government took office.
 
The report reinforces what has been clear for some time – the amount of taxpayers’ dollars spent on external contractors and consultants in the public sector has shot up over the past seven years at the same time the Liberal Government has slashed 19,000 jobs from the public service.
 
There are real questions to answer about whether this increase in expensive consultants and contractors actually delivers value for taxpayers’ funds, especially when at the same time the capability and resources in the public sector is diminishing.
 
Only two years ago the Auditor-General had a similar examination of government contracting, identifying a range of serious issues.
 
This report brings on a severe case of deja-vu because it seems that the Liberal/National Government has learnt nothing from their previous failures in contracting out and over use of consultants.
 
The report raises serious questions including a serious lack of transparency in contracting and ballooning costs of large consultancies, and the Joint Committee of Public Accounts and Audit must examine the issues through a public inquiry.
 
It’s time this Government valued the skill, capability and commitment of Australian public servants and resourced it appropriately.

THURSDAY, 12 MARCH 2020