Cost of moving Skills SA to Education Department then back to Department for State Development revealed to be nearly $500,000

Taxpayers have forked out a staggering amount to move a government agency out of one department then back again – but the site of the agency’s office never changed.

Taxpayers forked out nearly $500,000 to move a government agency out of one department then back again – but the site of the office never changed, a parliamentary committee has heard.

Skills SA, which is charged with fostering vocational education and training, was in 2022 moved to the Education Department from the-then Department of Industry, Innovation and Science.

The move cost upwards of $360,000 – only for the agency to be returned this year into effectively the same department, which has been rebranded as the Department for State Development (DSD).

Parliament’s Budget and Finance committee heard another $110,000 has been spent to move the agency back.

Opposition finance spokesman Heidi Girolamo said the situation would be funny if it wasn’t so embarrassing for the government. Picture: Matt Loxton

Department for State Development chief executive Adam Reid said the extra cost related to transfer of payroll and IT operations but the agency’s office had not physically moved location.

“They remained in 11 Waymouth Street with the Department for Industry, Innovation and Science, so we didn’t actually have that physical move in and out,” he told the committee this week.

“Most of the costs of moving back into DSD are shared services costs, internal to government costs.”

Committee chair and opposition finance spokeswoman Heidi Girolamo said the figure was “mind-boggling” and described the transfer and subsequent return as a “failed shuffle”.

“This significant amount of taxpayer money was spent, and no one actually moved – it would be funny, if it wasn’t so embarrassing for this Labor government,” she said.

“And now to find even more money has been spent is definitely worthy of a comedy script.”

It was earlier revealed the $360,000 cost of the first move included $200,000 that was paid to consulting firm PwC.

“This is such a waste of taxpayer money,” Ms Girolamo said.

But a government spokeswoman blamed the former Liberal government for initially abolishing the Department for State Development.

“The Opposition – who failed to meet their apprenticeship targets, and abolished industry, business growth, and small business functions while in government – have no credibility to lecture us for doing the work to rebuild the Department for State Development,” she said.

“Those opposite did costly damage to South Australia by abolishing the Department for State Development, creating a skills crisis and costing taxpayers in wasteful machinery of government costs.”

She said the re-established DSD will build a training system to deliver on AUKUS, three-year-old preschool and build more homes.

“We are seeing the highest number of students in training since 2015, apprenticeships and traineeships in priority areas growing, higher completions, and proper forecasting of labour market needs being undertaken for the first time,” she said.