Chris Minns says reducing government spend on third-party workers will allow the party to reinvest extra savings into health and education
New South Wales Labor says it will save the state’s budget $1.6bn by slashing the use of private labour hire, claiming government expenditure on third-party workers has grown more than $1bn over the past decade.will announce Labor would cut the use of private external contractors by a quarter if it wins election later this month, vowing to reinvest the extra savings into health and education spending.
Labor said it had commissioned an analysis showing the use of contingent labour had grown by 19% a year since 2016, reaching as high as $1.8bn a year in the current financial year.It said its own analysis showed labour hire costs would reach $2bn a year by 2025, after the NSW auditor general last week released a report which found $1bn had been spent on private consultants since 2017.
The auditor found in many cases departments did “not procure and manage” the cost of private consultants effectively, and most “do not have a strategic approach to using consultants, or systems for managing or evaluating their performance”. During his campaign launch speech on Sunday, Minns also said he would cut back on the use of consulting firms.
“We’ll end that exorbitant waste, we’ll find savings to make sure our public services run better. The truth is it’s far too top heavy, and the money must be directed where it’s needed – to those who deliver the services,” he said.
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