The Australian Public Service (APS) has been undergoing significant changes since the one-year-old Labor government took office. Minister Katy Gallagher, responsible for both public service and finance, recently discussed the government’s efforts to reduce reliance on private consultants and rebuild the APS’s internal capabilities.
Rebuilding public sector capability
Minister Gallagher highlighted that the former government’s artificial staffing cap created an environment where public servants could only be employed with special exemptions. Consequently, the reliance on external consultants surged to fulfil the required tasks. Recognising the need to rebalance this situation, the current government has successfully revised the APS’s dependence on private consultants. Approximately $3 billion in consultant and contractor spend has been redirected from agency budgets. By converting external labour positions to permanent public service jobs, the government has reduced costs and created around $800 million in budget savings.
Furthermore, she emphasised the government’s commitment to rebuilding public sector capability. She mentioned plans to introduce an in-house consulting model by the end of the year. This approach, funded through the May Budget, aligns with Gordon de Brouwer’s ongoing public sector reform work. The introduction of an in-house consulting model will strengthen APS’s internal expertise and reduce reliance on external consultants in the long run.
Enhancing transparency and accountability
The lack of transparency and accountability in the dealings between government agencies and consultant firms has been a cause for concern. Recent Senate inquiries have shed light on these issues, prompting reflections on the need for improved frameworks and oversight.
Minister Gallagher acknowledged the importance of addressing the concerns raised, particularly regarding conflicts of interest and effective management. The government is actively working on public sector reform, including measures to enhance procurement processes to ensure that appropriate frameworks are in place. Referrals to authorities such as the Australian Federal Police have been made to address any potential wrongdoing.
She also addressed concerns about the economy and the government’s fiscal policies. While Treasury’s forecasts anticipate growth in the Australian economy, the minister acknowledged the possibility of a slowdown. The government remains committed to rolling out the budget decisions that have been made, closely monitoring economic circumstances, and making necessary adjustments accordingly. This responsible approach ensures that the budget and fiscal policy remain on a stronger footing, as highlighted by Treasurer Jim Chalmers.
As the government closely monitors economic conditions and strengthens fiscal policies, it aims to maintain a solid budget position to support the economy as required. The ongoing reforms and initiatives highlight the government’s determination to create a more efficient and accountable Australian Public Service.