Question Time

PLANNING AND LOCAL GOVERNMENT DEPARTMENT CONSULTANCIES

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:24): I seek leave to make a brief explanation before asking the Minister for Urban Development and Planning a question in relation to the Auditor-General's Report and the answers he provided yesterday in the examination of that report.

Leave granted.

The Hon. D.W. RIDGWAY: In yesterday's examination of the Auditor-General's Report, I asked a number of questions. I was interested in consultancies and the consultants that have been employed by the Department of Planning and Local Government, in particular, the consultancy the minister identified as having been awarded to Ernst & Young for between $10,000 and $50,000. What sparked my interest was the answer, or the lack of answer, by the minister, as follows:

[This consultancy was to] develop an activity-based costing model to enable the department to better analyse the resource effort and costs associated with the provision of certain services.

I have read that a number of times, and I am unable to understand exactly what the minister meant. Can the minister translate that into English but also, more importantly, will he inform the house exactly what the certain services are that will better analyse the resource effort and the costs associated with the provision of those services?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Industrial Relations, Minister Assisting the Premier in Public Sector Management) (14:25): I thought I indicated yesterday that the Department of Planning and Local Government is a new department. It was established only two years ago, and it came about as a merger of local and state government and what was formerly Planning SA. Because it was a newly created department, I support the decisions of the management of the department in getting external advice. As the honourable member said, it was a relatively low value consultancy. I support the department in getting advice in relation to its technical operations. As to the exact descriptions, I am happy to seek further information from the department.

Members interjecting:

The Hon. P. HOLLOWAY: Well, do you really think—

The Hon. R.I. Lucas interjecting:

The Hon. P. HOLLOWAY: No, I don't. Do these people opposite really think that ministers go through every single account that is in the department? I have four departments. Do you really think that we should be going through every single account? I can assure you that we look very closely at the bigger ones. If the department decides that it will get external advice from financial consultants in relation to setting up a new department, then that is fine by me. It is not a large amount of money. In relation to that matter, obviously the department is going—

The Hon. R.I. Lucas interjecting:

The Hon. P. HOLLOWAY: I am not asleep at the wheel. I mean, come on! What a comment from the former treasurer, where they spent $116 million on consultants to help them sell the electricity trust. Here, we are not talking about $120 million, or something of that order; that was 10 years ago, and it would be the equivalent of $200 million or $300 million in today's values. We are not talking about that; we are talking about a relatively minor amount in relation to a consultancy to get some advice. The Department of Planning and Local Government, like other departments, seeks external consultants occasionally to have a look at their operations, and so they should.

The Hon. Mr Lucas has not only been party to extensive privatisations, as he was with the electricity trust, but in elections he has also advocated in terms of reducing the number of public servants. Well, clearly, if one is to have an efficient Public Service it is important that we should have, where appropriate, external advice.

The Department of Planning and Local Government is a relatively small department comprising fewer than 200 employees and, on its establishment, it did not have all the extensive financial and human resources background that other larger departments might have. Given that it is a new department, it is appropriate that it should choose to seek advice from consultants in relation to the necessary provision of services.