New policy prioritises in-house teams for delivering essential services
The New South Wales government is introducing a new "core work" policy aimed at reducing the public service's reliance on external consultants for essential services.
The policy requires government agencies in the state to prioritise in-house delivery of essential government functions, including:
- Development of legislation and regulation
- Development of Cabinet submissions and advice to ministers
- Policy development, analysis, and recommendations
- Grant administration, programme design, administration, or management
According to the state government, external support will only be considered after internal capacity has been assessed and ruled out, as well as in limited circumstances such as:
- Temporary surge capacity
- Independent audits
- Specialist capabilities essential for cultural safety and integrity, including work involving First Nations communities
"This policy is about putting the public back in public service. It ensures that core work is led by accountable, experienced public servants, not handed off to consultants or private contractors," said Domestic Manufacturing and Government Procurement Minister Courtney Houssos in a statement.
Further measures under core work
Meanwhile, the policy also introduces new measures requiring agencies to identify and define their own core work. It also mandates that they:
- Develop transition plans to reduce external reliance
- Track and report the proportion of core work delivered internally
- Set annual capability-building targets
- Report on progress annually
"This is a critical step in restoring the capability of the NSW public service," Houssos said.
Overreliance on consultants
The new core work policy comes after the NSW Auditor-General found that the previous state government spent around $1 billion on consultants without having enough procurement and management policies in place.
"We are ending the overreliance on consultants, safeguarding institutional knowledge, and ensuring taxpayer money is spent wisely," Houssos said.
"This policy equips our public service to not just respond to today’s challenges, but to plan, lead, and deliver the long-term priorities of the state."
