A parliamentary report into consultancy firms has today reinforced how crucial it is for public sector work to stay in the hands of public sector workers, according to the Community and Public Sector Union (CPSU).
The inquiry first started when it was revealed that individuals at PwC leaked confidential information obtained while undertaking government work, to benefit other clients of the firm.
The CPSU has long highlighted the integrity risks posed by outsourcing to consultants and their negative impact on APS capability and capacity. The PwC scandal exposed to the serious issues surrounding the relationship between government and consulting firms.
The CPSU is particularly pleased to see the report recommend:
- Strengthening whistleblower protections by ensuring greater alignment of whistleblower protection laws across the public and private sectors; considering greater support for whistleblowers such as a Whistleblower Protection Authority (covering both the public and private sectors) and access to civil remedies and financial compensation; and applying whistleblower protections to large audit, accounting and consulting firms.
- The Australian Government exclude PwC or any of its related entities to tender for government work until the completion of all ongoing investigations.
- Consulting firms undertaking government work be required to make a declaration if subject to supervised remediation whilst undertaking government work, and the exact terms of such supervised remediation.
- Creating a consultancy code and associated compliance body within government that will register individual consultants and have graduated registration requirements for firms based on firm size. Government entities, including Corporate Commonwealth Entities, should be required to only engage consultancies who are members of this body.
- The Department of Finance consider further mechanisms in procurement on consulting to reduce domination of the Big 4 firms.
While the report makes important recommendations, the CPSU believes it falls short by not requiring companies to first meet their tax obligations in Australia before being awarded government contracts.
Quotes attributable to Melissa Donnelly, CPSU National Secretary:
"The reason this inquiry exists at all, is because of the inability of the private sector to do government work without putting their own profit motives ahead of Australians.
"This is the second Parliamentary report this year that has examined the wide range of issues that arise when you give public sector work to a for-profit business.
"The CPSU commends the work of the Committee in making some much needed recommendations such as the strengthening of whistleblower protections across both the public and private sectors and an increased regulatory framework across audit, accounting and consultancies.
"However, an opportunity was missed to recommend that any companies receiving government contracts be required to firstly meet their tax obligations here in Australia.
"It must be said that these private companies will always have a profit motive, which means they will always fall short when it comes to meeting public service standards because they are not operating to service the public. They are operating to service profit margins.
"The solution here is simple - keep public sector work in the hands of public sector workers.
