Consultancy firm issue worse than expected: Gallagher

afr.com:

Finance Minister Katy Gallagher has admitted the over-reliance of consultancy firms in the public service was worse than expected.

Katy Gallagher. Alex Ellinghausen

Senator Gallagher said while she was aware of an over-reliance on consultancy firms being used for government projects, the scale became apparent after she won office.

“It is a problem – it is worse than I thought,” she told ABC Radio on Monday.

“We’re taking steps to rectify that, but it’s going to take a bit of time because of the way the imbalance has occurred over particularly the last five to seven years.”

The finance minister said the government was trying to bolster in-house consultancy for the public service.

“There will always be things that you need to seek external advice from, but at the moment, the balance is out of whack,” she said.

Shadow treasurer Angus Taylor said conflicts of interest with consultants needed to be better managed.

“Government can become a better client. That means using consultants for when they have real value. There are times when consulting skills are extremely useful to government and to businesses,” he said.

“If there are conflicts of interest, they need to be managed properly, and they should be dealt with forensically and appropriately.”

AAP