The shift from Australian Public Service (APS) staff to labour hire, consultancies has undermined APS capability, according to a new report from the Senate Finance and Public Administration References Committee.
In its Report APS Inc: undermining public sector capability and performance, the Committee said the shift had generated profits for multinational corporations but undermined APS capability, wasted expenditure on poor value-for-money ventures and weakened Public Service delivery for Australians.
The Committee said its inquiry had reiterated the “well-established position” that the APS was suffering from a lack of investment in its people, its policy development and its digital and ICT capabilities.
“This is resulting in direct and adverse impacts on the APS’s ability to deliver for the community,” it said.
“The hollowing out of APS capability through privatisation and externalisation must stop.”
The Committee agreed with the findings of a 2019 Independent Review which recommended a service-wide transformation and observed that while the APS was not broken, it was not performing at its best.
“In saying this, the Committee would like to make clear that it is not diminishing the tremendous amount of work done by APS staff and leadership,” it said.
“The Committee acknowledges the extraordinary commitment and resilience shown by APS employees over the past 24 months in dealing with the unprecedented crises created by bushfires, floods and the ongoing COVID-19 pandemic.
“However, what became abundantly clear to the Committee during this inquiry is that it is not sufficient or sustainable to rely on the efforts of APS employees while APS capability is being run down and undermined.”
The Senate Standing Committee said there was a pressing need for the APS to pivot away from the “damaging trend” of outsourcing core, ongoing Public Service work.
It said the Average Staffing Level (ASL) cap had led to a systemic overreliance on labour hire and contracting arrangements within the APS, was eroding workforce capability and leading to poor service delivery outcomes.
The Committee said it was also concerned by an “overreliance” on external consultants for policy advice.
“When the Government, despite access to a skilled and independent APS, consistently chooses to spend exorbitant amounts of taxpayer money on commissioning strategic policy advice from private consulting firms, public sector capability is undermined,” it said.
The Committee made 36 recommendations related to labour hire arrangements; digital and ICT capability; the use of consultants for public policy advice; procurement capability; strategic management of the APS workforce; and the culture of the APS.
It said the APS should focus on rebuilding and investing in in-house skills, systems and people to restore its capability and reach its full potential.
Following the release of the Committee’s Report, the Community and Public Sector Union (CPSU) launched a petition calling for the implementation of all 36 recommendations.
The Committee’s 163-page Report can be accessed at this PS News link.
