New analysis reveals that annual State Government spending on consultants, contractors and labour hire has more than tripled under the Andrews Government.
Since November 2014, more than $24.4 billion has been spent in total on contractors, consultants and labour hire, lifting from $1.281 billion in 2014-15 to $4.497 billion in 2021-22 and an estimated $4.8 billion in 2022-23, an increase of 275 per cent.
This significant increase in consultants, contractors and labour hire expenditure comes on top of the almost doubling of Victoria’s public sector wages bill under the Andrews Government, which has increased from $19.834 billion in 2014-15 to a budgeted $36.623 billion in 2023-24.
This analysis deals only withthe major government departments, the Victorian Funds Management Corporation, Court Services Victoria, the Major Transport Infrastructure Authority, the Parliament of Victoria and Victoria Police. There are hundreds of authorities and agencies which do not comprehensively report their spending on contractors, consultants and labour hire. If these agencies were included, the spending would likely be billions of dollars more.
Shadow Special Minister of State, David Davis, said Victorians were being punished for the incompetence of the Andrews Government.
“Daniel Andrews must explain this extraordinary consultant, contractor and labour hire expenditure and how it represents value for money for Victorian taxpayers,” Mr Davis said.
“Victorians are facing a cost of living crisis with debt, taxes and interest repayments all to rise, yet instead of easing cost pressures on Victorians, the Andrews Government continues to spend billions on highly-paid contractors and consultants.
“Daniel Andrews promised to cut expenditure on consultants but has done the exact opposite. Every Victorian is paying the price of the Andrews Government’s incompetence and mismanagement.”
