Labor Minister Appeals to Public Servants Ahead of Federal Election
Minister for Public Service Katy Gallagher delivered a passionate speech at the IPAA National Conference on Dec. 5.
Her tone was notably sharper and more political, directly warning the Australian Public Service (APS) about the risks of a Liberal-National Coalition government.
Gallagher reaffirmed the Albanese government’s commitment to the public service, while accusing the Coalition of underinvesting in it.
“When we came to government, we did inherit an APS with growing demands, increasing pressure, complex and challenging public policy dilemmas against a backdrop of diminishing or reduced resourcing to deal with all of that.”
Upcoming Election and APS Future
Gallagher said the APS would be a key issue in the election.
“Within the next six months, there will be an election. We know the future of the public service will be at the centre of some of that election contest,” she stated.
She took aim at the Coalition’s stance, quoting Opposition Leader Peter Dutton’s criticism of the 36,000 new public sector jobs allocated in the budget. Gallagher also cited National Party leader David Littleproud’s remarks about cutting those jobs.
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“Now, just to prove I’m not scare mongering here, I can give you a direct quote from David Littleproud, the leader of the National Party, who said: ‘The first thing we’ll do is sack those 36,000 public servants in Canberra.’”
She pointed out that such cuts would lead to longer wait times for payments, fewer staff to handle calls, and diminished capabilities in vital areas like defence, border security, and biosecurity.
“There will have to be cuts to Defence and border security staff, delays to environmental approvals, and a return to more expensive consultants and contractors,” Gallagher claimed.
Rebuilding the APS
Gallagher highlighted the government’s progress in strengthening the APS, citing the clearing of a 42,000 veterans’ claims backlog, improvements in NDIS oversight, and the blocking of over 500,000 cyberattacks.
She also noted Services Australia’s success in resolving 500,000 claims and answering 1.7 million calls, emphasising the importance of a well-resourced APS.
The Hidden Costs of Outsourcing
Gallagher criticised the previous government’s reliance on outsourcing and staffing caps, pointing to a 2022 audit that revealed departmental spending rose 35 percent while the APS shrank 4 percent.
“Core capabilities outsourced, service standards in decline, and Australians waiting too long for essential services they relied on,” she lamented.
Gallagher said this saw the government reliant on 54,000 contractors, costing taxpayers an estimated $21 billion annually.
Gallagher pointed out that these consultants often filled core public service roles, including sitting on executive teams and drafting cabinet submissions.
“It’s simply not true that the ASL staffing cap was keeping costs down,” she said.
Labor ministers have stripped back the amount of spending on consultancies since coming to office, saying they have cut $890 million on billing with firms like the Big Four between 2021-22 to 2023-24.
At the same time, the government has sort to expand the public service to instead take these duties in-house.
On David Pocock and the Senate
Speaking to reporters after the event, Gallagher also predicted independent Senator David Pocock could perform better than Labor for the Australian Capital Territory’s Senate spots.
She noted Pocock’s financial advantage, having raised nearly $2 million in the last election.
“We won’t have that money. In my time in politics, I’ve never seen that sort of money in Canberra,” Gallagher said.
Coalition Targets Public Sector Jobs
Since the May federal budget, the Coalition has strongly criticised Labor’s plan to create 36,000 new public sector jobs in the forward estimates.
Opposition Leader Dutton labelled said this was a misplaced priority.
Since then, his shadow ministers have upped the rhetoric, making it clear that significant public service cuts are part of their plan.
“You’ve got to ask yourself, do we need 36,000 more public servants?” Dutton questioned at a recent Minerals Council gala dinner.
Nationals leader David Littleproud also backed cuts, stating, “That is our first step. The Nationals have made it clear that we will get rid of those in Canberra.”
In another interview, Littleproud elaborated further, saying, “The first thing we’ll do is sack those 36,000 public servants in Canberra, that’s $24 billion worth.”
