Chapter 1

Introduction

Terms of reference

1.1
On 1 August 2019, the Senate referred an inquiry into the impact of changes to service delivery models on the administration and running of Government programs to the Legal and Constitutional Affairs References Committee for inquiry and report by 16 October 2019. On 16 September 2019, the Senate extended the reporting date to the last sitting day in February 2020.
1.2
The committee was asked to inquire into:
The impact of changes to service delivery models on the administration and running of Government programs, with particular reference to:
(a)
the privatisation of Australia’s visa and citizenship program, including:
(i)
the integrity of Australia’s visa and citizenship system,
(ii)
the commercial implications and increased costs to industry, with particular regard for the tourism and higher education sectors,
(iii)
the implications to national security, data security and privacy, and
(iv)
the risk to public sector employment – especially rural and regional employment – through service delivery model changes; and
(b)
Centrelink’s Robodebt compliance and outsourced debt collection program, including:
(i)
the integrity and impact of the automated debt collection processes,
(ii)
the limitations and impact of Robodebt collection methods,
(iii)
the identification of inaccurate debts – made without human oversight,
(iv)
the impact to public sector employment – especially on the capacity and adequacy of staffing level, and
(v)
the review and appeals process for debt notices; and
(c)
the broader outsourcing of functions in the Human Services portfolio and at the National Disability Insurance Agency, including:
(i)
the processes for contracting and tendering under the outsourcing of services,
(ii)
the impact of capped staffing numbers and the efficiency dividend at government departments/agencies,
(iii)
the future planning and preparation for the outsourcing of departmental functions,
(iv)
the impact outsourcing has on service provision, and
(v)
the impact on current public sector employment and the risks to future public sector employment;
(d)
the outsourcing of security vetting services in the Australian Government Security Vetting Agency, including:
(i)
the processes for contracting and tendering under the outsourcing of services,
(ii)
the impact of capped staffing numbers and the efficiency dividend at government departments/agencies,
(iii)
the future planning and preparation for the outsourcing of departmental functions,
(iv)
the impact outsourcing has on service provision, and
(v)
the impact on current public sector employment and the risks to future public sector employment; and
(e)
any related matters.

Conduct of the inquiry

1.3
The committee advertised the inquiry on its website and wrote to a number of organisations and individual stakeholders inviting them to make a submission by 23 August 2019.
1.4
The committee received 44 submissions, which are listed at Appendix 1. A public hearing was held in Canberra on 1 November 2019. A list of witnesses who appeared before the committee is listed at Appendix 2.

Acknowledgement

1.5
The committee thanks all those who made submissions and gave evidence at the public hearing.

Notes on references

1.6
References to the Committee Hansard are to the proof version. Page numbers may differ between the proof and final version.

Structure of the report

1.7
This report has three chapters. This first chapter provides an introduction.
1.8
Chapter 2 looks at the issue of outsourcing and privatisation of government services generally, and addresses all of the terms of reference except (a). It includes the committee’s view and recommendations relating to privatisation and outsourcing generally.
1.9
Chapter 3 considers term of reference (a), the privatisation of Australia’s visa and citizenship program. It concludes with the committee’s view and recommendation.

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