Business Council calls for greater private role in public services

In its submission to the independent review of the public service, the Business Council of Australia has advocated for an increased role for the private sector and governments should always ask if a function should actually be done by public servants.

"The Review should examine if there are opportunities for the APS to retreat from some service delivery areas because they can be better delivered by other sectors," the submission from the council's chief executive, Jennifer Westacott said.

The council said some services will never be able to be delivered by the private sector, but supported more competition in delivering services like public housing, Indigenous services and disability services.

"In cases where the government sector remains the service deliverer, the APS should still consider whether subjecting them to greater contestability and benchmarking will drive improved efficiency and outcomes," the submission said.

It also called for a further reduction in the number of Commonwealth agencies, saying the number had dropped from 1181 entities, bodies and administrative relationships in mid-2016 to below 1000.

"It is difficult to see why a nation of Australia’s size has so many Commonwealth agencies. The need for independence alone does not justify the establishment of a new operational body."

The council also called for more specialist skills within the public service, noting there has been an increase in the number of contracts for consultants.

"There will inevitably be times when there is still merit in the APS engaging consultants to undertake work on their behalf," the submission said. "However, it is critical that the APS has the skills and knowledge to design and oversee these projects to ensure that they deliver sound outcomes and value for money."

The business council called for greater consultation with the private sector and for the cost impacts of regulation to be considered.