INDUSTRY DEPARTMENT’S MILLIONS TO MANAGE ITSELF

The federal industry department is spending almost as much taxpayer money managing itself as it is on supporting Australian industry and jobs.

 

The Department of Industry, Innovation and Science’s Incoming Government Brief to Minister Greg Hunt reveals an extraordinary $156.5 million will be spent in 2016-17 on corporate, ICT and related departmental services, with only $210.8 million on external programs.

 

In place of proper funding, the Liberals have resurrected the failed shared services model of the Howard years and sent millions of taxpayer dollars down the drain in the process.

Australia has one of the best public services in the world, but it needs to be properly funded to meet its obligations to the Australian people and deliver the services needed to support industry and jobs.

The Abbott/Turnbull Government has torn down the ten-year agenda Labor put in place to provide practical support for emerging industries, for innovation, for the commercialisation of bright new ideas and for developing better linkages between researchers and business.

How it can take some 806 staff just to manage the department - more than twice the number assigned to delivering the flagship AusIndustry programs - is unfathomable.

Such utter profligacy at a time when critical sectors of the economy are under tremendous strain is nothing short of appalling.

This government has wasted a great deal money on its ideological crusades but has failed to back Australian industry and jobs.

Worse, it is a slap in the face to those Australians who depend on local industry for their livelihoods.

It is unjustifiable to be wasting so much taxpayer money on a discredited experiment in administration when the Turnbull Government is failing so comprehensively to back Australian industry and is chronically underfunding our national science and research programs.

A report by the National Commission of Audit in February 2014 found “the proportion of departmental expenses spent by agencies on corporate functions” was “on average…around 21 per cent of their running costs.” At that time the Industry Department’s average was 19.6. Two years later with the addition of “Corporate Network” and other costs it is now more than double at 42 per cent of allocated expenditure, according to the Incoming Government Brief.

Even the Department of Finance has acknowledged publicly that:

“Despite the evident potential benefits, there has been a long history of, at best, partial success in moving to shared services.”

Labor is all for a more efficient use of taxpayer dollars but this expensive and ultimately failing ‘shared services’ experiment has to end.

 

 

Source: Incoming Government Brief Volume 2 The Hon Greg Hunt MP

 

Indicative divisional budget for 2016-17:

Indicative ASL for 2016-17:

 

$M

 

Anti-Dumping Commission

$11.826

73.00

AusIndustry

$39.371

326.50

AusIndustry Innovation Programmes

$15.020

124.70

BizLab

$1.833

10.00

Corporate Division (Corporate Network)

$47.891

579.00

Corporate Division (Corporate Overheads)

$50.719

10.00

Digital Strategy and Operations

$23.941

included in corporate

Economic and Analytical Services

$13.937

80.00

Energy

$18.433

125.00

Energy Security Office

$4.860

31.00

National Innovation and Science Agenda Delivery Unit

$0.811

6.50

Office of Northern Australia

$2.503

18.00

Portfolio Strategic Policy

$18.190

127.00

Resources

$14.963

92.20

Science and Commercialistion Policy

$18.544

110.00

Sectoral Growth Policy

$18.079

110.00

Office of the Australian Building Codes Board

$4.000

44.00

 

 

 

Australian Astronomical Observatory

$10.170

81.00

National Measurement Institute

$40.405

350.00

Questacon

$11.846

167.00

 

 

 

Budget allocation to run the Department

$156.511

806.00

Budget allocation to deliver programs

$210.831

1658.90

Total Department

$367.342

2464.90

 


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