Chapter:
18 - Industrial Relations
Mover:
Jonathan Stallard
Seconder:
Hannah Smith
 
 
Source:
Union: CPSU
My Private Notes


Preamble
​The Commonwealth Government’s overreliance on consultancies has undermined the longer-term capability of the Australian Public Service at a significant financial cost. Australian National Audit Office (ANAO) analysis showed the Big Four consulting firms alone received over $1.2 billion in consultancy-flagged contracts in the ten years to July 2022, an increase of over 1270% in ten years. 
While there is a modest role for external consultants in specific temporary situations or for specialised expertise, much of the work could be done internally, and the reliance on consultants for core work undermines APS capability and skills development. 
Significantly reducing the Commonwealth Government’s medium to long-term reliance on external consultants is of paramount importance to reduce conflicts of interest, significant reduce the cost of external advice, and rebuilding lost skills and capabilities in the public service. 
Consultancy use within the public service is meant to support our public services by working in specialist areas to enhance public service capability, not replace public service work while lining the pockets of large corporations.  
General Resolution

Action on Consultants in the APS

​Conference acknowledges the Albanese Labor Government's ongoing work, in partnership with APS workers and unions, to rebuild APS capability.  
This Conference resolves that the Commonwealth Government:  
• Increase transparency and accountability in the contracting process of consultants through rigorous oversight and public reporting requirements, drawing on best practice from other jurisdictions. This would include;  
o the development and implementation of a legislated Code of Conduct for consultants that includes substantial penalties for breaches
o establishing clearer policy guidelines for engaging external consultants and caps on spending for external consultancy services, ensuring these services are only used when necessary and when they offer a clear value proposition.  
o Require consultancies to provide a client list to enable identification of possible conflicts of interest.
• Build on the Strategic Commissioning Framework to develop a news of engagement and use of external consultants, including at the agency level, to drive increases in capability and insourcing.  
• Develop and implement a debarment regime, based on the regime developed by the WA Labor Government, that allows consultant firms to be banned from government contracts for breaches of ethics and integrity, including in their operations in overseas jurisdictions.  
• Invest in expanded versions of Australian Government Consulting within agencies to handle more tasks that are currently outsourced, thereby retaining skills and knowledge in-house.  
• In circumstances where highly specialised and technical knowledge is required that cannot be maintained as an internal capacity of the public service, the public service should look to partner with Australia's university sector instead of for-profit consultancies.  
• Conduct a comprehensive review of current contracts with external consultants to assess the possibility of transitioning those roles and functions back into the public sector.  
• Genuinely consult with relevant unions on all changes relevant to the rebuilding of the APS.