Inquiry to look into NSW public service use of consultants

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As the relationship between the federal public service and consultancies is in the spotlight, the NSW public service’s use of consultants will be scrutinised in a new inquiry.

The inquiry will be chaired by the NSW Greens MP Abigail Boyd, the head of the public accountability committee.

Boyd said there was an “over-reliance” on consultants in the NSW public service.

“Breaches of confidentiality and trust are, of course, of enormous concern, but the purpose of this inquiry goes beyond that,” Boyd said.

“I’m particularly interested in investigating exactly how far these enormous private consulting firms have burrowed into the machinery of government, displacing public sector workers and depleting our capacity for self-sufficiency.”

The inquiry comes off the heels of the deepening PwC confidential tax leak scandal, a repeated line of questioning this senate estimates.

A report from the Audit Office of NSW, published on the eve of the caretaker period, found over $1 billion was spent on consultants between 2017-18 and 2021-22.

The audit report criticised most of the state’s agencies for not using consultants in a strategic or effective way.

Spending on the Big Four consulting firms (KPMG, EY, PwC and Deloitte) accounted for 27% of the $1 billion spent on consultants — or $270 million.

In the appendix for the above report, former NSW Treasury secretary Paul Grimes pointed out the period covered the COVID-19 pandemic, which required a fast response from the government.

“Outside consultancy expertise played a valuable role in assisting with this response,” Grimes said at the time.

“Treasury considers with is a critical factor that should be taken into account in interpreting the report’s findings.”

Prior to the election, NSW premier Chris Minns said he would cut back on the use of consultants in the public service.

More recently, his government announced a two-year pay freeze for senior public servants and parliamentarians, a move labelled “distracting” by unions as they call for action on a pay rise.

The same public accountability committee which will examine consultants looked into former NSW deputy premier John Barilaro’s appointment as senior trade and investment commissioner to the Americas last year.