Tasmanian government spends big on consultants in search for departmental chiefs

The state government has been accused of “financial mismanagement” after it was revealed the Liberals paid a recruitment firm a large sum of money to hunt for new department bosses.

Labor MP Shane Broad. Picture: Chris Kidd

The Rockliff government has paid a total of $170,000 to a recruitment firm as it seeks to fill two of the most senior and highly paid positions in the public service, with Labor describing the move as an example of the Liberals’ “financial mismanagement”.

Hays Specialist Recruitment, considered the world’s leading recruitment agency, has been tasked with finding new secretaries for the State Growth and Treasury and Finance departments.

It comes after Treasury boss Tony Ferrall and State Growth head Kim Evans decided to exit the state service in August after their contracts expired. There are currently acting arrangements in place to cover the roles.

Secretary of the Department of State Growth Kim Evans at Budget Estimates. Picture: SAM ROSEWARNE.

Hays, which has an office in Hobart, has been awarded a $92,900 contract to find a replacement for Mr Ferrall and a $79,400 contract to recruit Mr Evans’ successor. The firm began its searches on July 15.

The government’s tenders website describes the work assigned to Hays as the provision of “recruitment services by conducting an executive search for the [positions]”.

All contracts, including consultancies, valued at $50,000 and over are disclosed on the website.

In 2022, the Treasury secretary was on a base salary of $485,000, while the State Growth chief was on $380,000.

Labor treasury spokesman Shane Broad said “many Tasmanians would be gobsmacked” to learn of the government’s consultancy spend.

Parliamentary committee opens into handling of Covid crisis, former Secretary of the Department of Treasury and Finance Tony Ferrall and former Tasmanian Premier Peter Gutwein. Picture Chris Kidd

“This spend doesn’t pass the pub test, particularly at a time when many Tasmanians are struggling to pay the bills and put food on the table,” Dr Broad said.

“After 10 years with a Liberal government, Tasmania has record debt and deficit and this kind of financial mismanagement is one of the contributing factors.”

But a government spokeswoman said the two positions were “critical to the efficient and effective delivery of services to Tasmanians and advice to government” and a thorough recruitment process was therefore necessary.

“The Treasury secretary is responsible for overseeing Tasmania’s more than $8 billion annual budget, and the State Growth secretary manages nearly 1000 staff to ensure Tasmania’s economic prosperity,” she said.

“It is important there is a comprehensive recruitment process to fill these positions.”

The spokeswoman said appointments would be made “as soon as possible” but noted that “comprehensive processes such as these take time”.

“The use of consultancies is carefully governed through the application of the government’s procurement policies, including ensuring that we get value for money on behalf of Tasmanians,” she said.