Serco sights on NDIS billions

Global services conglomerate Serco is eyeing the national disability insurance scheme as a source of new profits,

Global services conglomerate Serco is eyeing the $22 billion ­national disability insurance scheme as a source of new profits and is hiring a “subject matter ­expert” to advance­ a business case.

The company — best known in Australia for running the governmen­t’s outsourced immig­­ration detention centres, including a facility on Christmas Island — wants its NDIS expert to “analyse the ­market and determine what opportuni­ties exist”.

It is the first sign the company aims to move into the disability sector. People who will use the NDIS said while the move was “not shocking, it is concerning”.

“We’ve known the NDIS would open up the marketplace for new providers — that’s not new — but it is worrying when we have the big players come knocking because you wonder how that will affect the mix,” one advocate said.

The scheme will grant almost all funding to individuals who qualify and they will choose how and when to spend their money on disability supports, such as new wheelchairs or therapy.

Serco is part of two parliamentary inquiries in Western Australia, into services at its largest­ hospital, the Fiona Stanley Hospital, and prisoner transport. It has con­tracts for non-clinical care at the hospital and for court security and prisoner transport in the state.

It was stripped of its respon­s­ib­ilities for sterilising hospital equipment after a breach last year and another this year in which tools were returned for surgeries with tissue and blood on them.

The Barnett government told parliament last month that it would not renew the Serco transport contract in June.

In Britain, the firm became ­notorious for charging the government to track prisoners it could not find and for misreporting statistics on a health contract. It has been slammed by rights groups for its refugee work. Serco Watch convener Colin Prenter said it had a record of “incredibly dysfunctional and dystopian practice”.

“They just see this as a commercial transaction, the lived ­experience of people with di­s­abilities is peripheral,” he said.

Serco Global, the parent employ­ing 100,000 on 600 outsourcing contracts, has issued several profit warnings in the past two years. Last year’s accounts showed an operating loss of about $2.7bn.

“The SME (subject matter expert) will act as a liaison point between key stakeholders and Serco working to identify and scope opport­unities to support the implementation and delivery of services within the NDIS market,” its job advertisement says.

“You will be responsible for devisi­ng business development strategies and plans for Serco Citizen­ Services that will achieve short, med­ium and long-term profitable growth targets.”

A Serco spokesman said the company always sought to “add value” to the delivery of public service­s. “We have been recognised through audits and awards for safe, effective and innovative ­delivery,” he said.