How to break up the big four consultancies’ dominance of Canberra
The closed shop of government consultancy tenders should be opened up to small and medium enterprises with special arrangements for the defence sector overhauled in a bid to break the stranglehold of the “big four” in the public service, according to a new paper circulated to senior federal ministers and state premiers.
Reforms are much needed to create a level playing field and encourage the growth of a sovereign consultancy industry, according to author John Glenn, a former Special Air Services officer and now founder of his own consultancy.
Defence contracting is under fire in a new policy paper.
“While the behaviours by some firms are clearly egregious, the major issue has been the extraordinary exclusionary access and influence these international companies have enjoyed by virtue of their size and reach,” Mr Glenn said.
“They are a convenient and easy procurement, largely through panels, and their dominance has been unwittingly encouraged by the public sector.
“We should not be buying surrogate resources as consultants, that’s wasteful. We should be accessing skills, experience, and know-how not readily available through specialist and boutique firms, preferably Australian firms that can grow.”
Mr Glenn prepared his paper in the wake of thePwC tax leaks scandal, which triggered a broader Senate inquiry trawling into the operations of its fellow big four consultants KPMG, EY and Deloitte, as well as Accenture, Boston Consulting Group and McKinsey.
The Albanese government has promised to rein in the use of consultants, labour hire and outsourcing and return work to the public service, claiming it will save $3 billion over four years.
Separately, local defence companies hope the scrutiny on the use of consultancies
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