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NSW taxpayers 'stung up to $4000 a day' as Treasurer outsources policy making

NEW SOUTH WALES Treasurer Dominic Perrottet's move to outsource Treasury work to KPMG is a waste of money and resources, according to the Public Service Association (PSA).

A report in The Sydney Morning Herald this morning revealed the Treasurer would pay consultancy firm KPMG $5.5 million to reform the state's stamp duty scheme.

“Once again the NSW Government is only happy to waste millions of taxpayer dollars on consultants when the expertise already exists in NSW Treasury many times over," PSA general secretary Stewart Little said.

Taxpayers could be paying as much as $4000 a day for this work, under the government's own procurement policy. The lowest rate for an analyst is $1200 a day.

"When the NSW Government froze the wages of public sector workers in 2020 they were told that everyone was tightening their belts. Treasurer Perrottet promised the government would go on a hiring spree - it seems he was only thinking of consultants.

"NSW has the best and brightest policymakers in the country. From those working around the clock in NSW Health, to the Service NSW and Treasury officials who've made sure people across the state get the support they need," Mr Little said.

"The level of expertise isn't easily matched, and they're ready to do the work but instead vital functions of the government are being outsourced to consultants at exorbitant rates. The Treasurer needs to do the maths again, because this doesn't add up."

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Australia fails to designate seafarers as 'key workers' in line with International Maritime Organisation resolutions

THE International Maritime Organisation (IMO) passed several resolutions in December 2020, specifically addressing the need for seafarers, and other marine personnel, to be designated as key workers.

Australia is a notable omission from the cohort of 45 IMO member states who have already determined seafarers to be key workers.

International Transport Workers Federation president and Maritime Union of Australia national secretary Paddy Crumlin said, “Australia must act immediately to align itself with international efforts, led by organisations like the IMO and ITF, to designate seafarers as key workers providing an essential service, and facilitate the safe and unhindered movement of seafarers for embarking and disembarking a vessel, accessing shore leave, and when necessary, access to shore-based medical treatment.

“While the COVID-19 pandemic continues to wreak havoc on the health of people and communities across the world, the outlook for seafarers becomes increasingly more desperate by the day.

“The despair of this crisis cannot be understated. Over 400,000 seafarers internationally are held captive on their ships, and an equal number are prevented from travelling to relieve these desperate workers due to the global and national inconsistencies in travel restrictions. 

“Australian seafarers are effectively locked out of jurisdictions where they are engaged in transport operations domestically, and the interconnection of global and national trade.

“It is vital that attention be paid to Australia’s reliance on essential workers in the maritime transport chain to maintain the continuous supply of essential goods that Australian communities rely on and that the Morrison Government act immediately to address the failed policy settings which continue to exacerbate this crisis for Australian and international seafarers.”

The IMO circular regarding the designation of seafarers as key workers is available here.

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Pandemic's implications for Australia's foreign affairs, defence and trade

FEDERAL Parliament is releasing the report of its inquiry into the implications of the COVID-19 pandemic for Australia’s foreign affairs, defence and trade policy.

The Committee found that the lessons from COVID-19 were not primarily about health.

The Chair of the Committee, Senator David Fawcett said, "The behaviour of nation states in response to COVID-19 has called into question some assumptions about the willingness of nations to support the global rules-based order. These assumptions have underpinned many aspects of Australia’s foreign affairs, defence and trade in recent decades."

Senator Fawcett stressed that “any decrease in support for the norms of the rule-based order negatively affects collaboration and conflict resolution between nation states, as well as the efficacy of commercial relationships between companies".

The Committee concluded that the pandemic revealed vulnerabilities in Australia’s security and critical national systems “caused by supply chains that rely on just-in-time supply from the global market, particularly where companies are subject to extrajudicial and coercive direction from foreign governments".

Senator Fawcett said because of the increased risks identified in the Strategic Update 2020, Australia must have a timely and strategic, whole-of-government response and that “returning to ‘business as usual’ is not an option”.

Senator Fawcett said," Unexpected, sustained disruption due to another pandemic or grey-zone, coercive or military actions by state actors could degrade if not disable one or more of Australia’s critical national systems.”

The Committee recommended the Australian Government change procurement rules to partner with Australian industry sectors which provide priority enablers to critical national systems. This partnership should be through the use of procurement to build and sustain sovereign capability, not just by offering one-off grants.

The Committee concluded Australia also required more investment and diplomatic effort to increase Australia’s resilience through trusted and transparent partnerships with like-minded nations.

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Intelligence Committee to inquire into extremist movements and radicalism in Australia

THE Parliamentary Joint Committee on Intelligence and Security has commenced a review into the extremist movements and radicalism in Australia. The inquiry was referred to the Committee by Peter Dutton MP, Minister for Home Affairs.

A full terms of reference is available online at the Committee’s webpage.

The Chair, Andrew Hastie MP said, “The Committee will be examining the nature and extent of, and threat posed by, extremist movements and persons holding extremist views in Australia.”

The Deputy Chair, Anthony Byrne MP said, “The Committee will, as always, conduct this inquiry in a bi-partisan manner and with a focus on the security of all Australians.”

Submissions are requested by Friday February 12, 2021. Further information about making a submission to a parliamentary committee inquiry is available here

Further information about making a submission to a committee inquiry can be found at this link.

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APRA and ASIC reports tabled in the House

THE House of Representatives Standing Committee on Economics recently tabled its reports into the annual reports of ASIC and APRA.

Committee Chair Tim Wilson said the work of the committee in scrutinising Australia’s key financial regulators remains vital in light of the findings of the Royal Commission, the COVID-19 pandemic and more recently, the standing aside of the chair of ASIC.

"The COVID-19 pandemic has created unprecedented disruption and uncertainty in the financial sector. Now, more than ever, it is essential to maintain strong prudential regulation and ensure fair and transparent dealings to safeguard financial stability and consumer trust in the financial sector," Mr Wilson said.

"The economic comeback post COVID-19 brings its own challenges. It is essential that governments, regulators, and financial institutions continue to be proactive and work together as the immediacy of the crisis fades and the hard work of economic comeback continues.

"Both ASIC and APRA have responded quickly and appropriately to the pandemic, unfortunately ASIC’s recent expenses scandal has overshadowed its efforts. The Committee takes its role of the oversight of ASIC very seriously, and will closely follow the outcome of the independent review into expenses of ASIC executives paid by the Australian tax payer," Mr Wilson said.

"Coupled with the data errors in the SMSF factsheets on the MoneySmart website that remain unacknowledged, it is difficult to say that there is as much confidence in ASIC today as there was at the same time last year and ASIC should seek to address these issues as a matter of urgency because they go to the heart of their capacity and internal processes."

Further information on these inquiries are available on the committee’s website.

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