State’s $8m cash splash on consultants despite Coaldrake outsourcing warning

Queensland’s Health Department has spent $8m on contracts with Deloitte since the release of the landmark Coaldrake report, despite warnings it erodes public service capabilities.

Queensland Health Minister Shannon Fentiman. Picture: Brendan Radke

Queensland’s Health Department has spent $8m on contracts with Deloitte since the release of the landmark Coaldrake report, new data has revealed, signalling no slowdown in the use of consulting firms despite warnings it erodes public service capabilities.

And the data, released through a question on notice, is restricted to spending by the department’s corporate arm and doesn’t include what each of the 16 hospital and health services have spent on consultancies and health service.

According to the state government, obtaining details for each HHS would “divert resources” away from frontline services.

But analysis of publicly available contract data, undertaken by the Opposition, is able to show a partial view of the HHS spend on consultancies in the 2022/23 financial year – $3.7m, with about $1.5m heading to Deloitte.

The question on notice revealed the corporate arm of Queensland Health spent $7.7m on contracts with Deloitte in 2021/2022 and $8m in 2022/2023.

It’s understood Deloitte took up 36 per cent of Queensland Health’s spend on consultants in the same time frame, meaning the total expense was closer to $43.5m.

Deloitte’s work with health included planning and managing the Covid-19 jab rollout and supporting the department’s “payroll and rostering” solution.

Health Minister Shannon Fentiman said Queensland Health, like other public agencies, engaged the “services of various consulting firms on occasion”.

“I won’t apologise for engaging experts to help keep Queenslanders safe, or to assist our hardworking frontline healthcare staff,” she said.

Professor Peter Coaldrake, in his 2022 review into the ­culture and accountability of the public sector, warned the habit of outsourcing work to consultancy firms would erode the capabilities of public servants.

Professor Peter Coaldrake.

In turn the government would be “potentially captive” to advice and solutions which “serve many interests” – like private sector profit – rather than solely for the good of the Queensland public.

“It would be naive to think that all of these will be in the best interests of the taxpaying public, and they will certainly put a premium on the price of any solution,” Professor Coaldrake stated.

Opposition Treasury spokesman David Janetzki said details of Queensland Health’s spend was “another example” of the state government’s “cosy relationship” with the big four consultancies.

The state LNP recently committed to reducing the reliance on consultants and “empower the public service” if they take government after the 2024 election.

Consultancy firms have come under the spotlight in recent weeks after it was revealed PwC misused confidential federal-level tax policy information to benefit private sector clients, triggering an ongoing Senate inquiry.

Deloitte Australia bosses including chief executive Adam Powick will front the Senate committee on Monday.

Deloitte, as part of the inquiry, disclosed in recent days it had dealt with one case of government information being misused in the 2022/23 financial year.

The company confirmed this did not relate to Queensland.