Mr McMullan

asked the Minister representing the Minister for Social Security, upon notice, on 11 March 1998:

(1) How many persons have worked in each department, agency, Commonwealth authority and company, including government business enterprises, for which the Minister has portfolio responsibility under a contract for services entered into with a firm whose sole or predominant business is the hiring of labour to clients (a) in 1996-97 and (b) between 1 July 1997 and 28 February 1998.

(2) In what sections of the department, agency, authority or company were the persons referred to in part (1) employed.

(3) What are the names of the labour-hire firms referred to in part (1) which provided services (a) in 1996-97 and (b) between 1 July 1997 and 28 February 1998.

(4) How were the labour-hire firms selected.

(5) Will the Minister provide a copy of the tender documents in each case where a labour-hire firm was selected by public tender.

(6) Will the Minister provide a copy of the terms of reference for the selection of labour-hire firms.

(7) Who comprised the selection panel for successful tenders.

(8) What commission was payable by each department, agency, authority or company to each labour-hire firm for each person contracted for labour.

(9) What total sum (a) is owed and (b) was paid to each labour-hire firm.

(10) What total sum was paid to labour-hire firms in total (a) in 1996-97 and (b) between 1 July 1997 and 28 February 1998.

(11) What projected labour requirement will be met by labour-hire firms in the departments, agencies, Commonwealth authorities or companies, including government business enterprises, for which the Minister has portfolio responsibility from (a) February to June 1998 and (b) July 1998 to June 1999.

(12) How many government employees have been replaced through labour provided by labour-hire firms in each department, agency, Common wealth authority and company, including government business enterprises, for which the Minister has portfolio responsibility.

Mr Ruddock (Immigration and Multicultural Affairs) —The Minister for Social Security has provided the following answer to the honourable member's question.

Due to the split between the Department of Social Security (DSS) and Centrelink, the following answers to the honourable member's question are supplied separately.The Department of Social Security's answers incorporate, where appropriate, answers on behalf of the Social Security Appeals Tribunal (SSAT).

(1) CENTRELINK

Recruitment of Permanent Staff

Recruitment of Contractors

(a) 1996-1997 Department of Social Security—220

(b) 1 July 1997 and 28 February 1998 Centrelink—367

DEPARTMENT OF SOCIAL SECURITY

(a) Due to the split between the Department of Social Security (DSS) and Centrelink, it is more appropriate that Centrelink respond to the 1996 portion of this question for DSS, as the personnel and recruitment function was maintained by Centrelink.The preferred employment agency utilised by the Department during 1996-97 was Templine.

(b) Excluding Templine, between 1 July 1997 and 28 February 1998 27 persons have worked in DSS under a contract for services entered into with a firm whose sole or predominant business is the hiring of labour to clients.Of the 27 persons, 23 were paid by the Department after an initial commission was paid to the labour-hire firm and four were paid directly through the labour-hire firm.

THE SOCIAL SECURITY APPEALS TRIBUNAL (SSAT)

18 persons were employed through labour hire agencies.

(2) CENTRELINK

Recruitment of permanent staff

Centrelink Call Centres, Melbourne metropolitan offices, Information Technology areas within Centrelink.

Recruitment of contractors

Information Technology areas of Centrelink and Department of Social Security

DEPARTMENT OF SOCIAL SECURITY

The persons provided by labour hire firms were employed in the following areas of the Department of Social Security:

The SSAT employed 4 contract staff in its Brisbane office, 1 in its Canberra office and 13 in its Sydney office.

(3) CENTRELINK

Recruitment of Permanent Staff

Recruitment of Contractors- also answer to part (9)

(a)1996-1997

(b) 1 July 1997 and 28 February 1998

DEPARTMENT OF SOCIAL SECURITY

(a) Excluding Templine, the SSAT utilised Select Appointments P/L, Kelly Services P/L and Drake Overload.

(b) The names of the labour-hire firms which provided services between 1 July 1997 and 28 February for DSS and SSAT were: Adecco; Metier Personnel; Drake Overload; Alectus; Green & Green; All-Staff; My Secretary; Wizard; Professional Careers; Select Appointments; Kelly Services.

(4) CENTRELINK

Recruitment of Permanent Staff

Centrelink Call Centres—Open RFI Tender

Smalls & Associates Pty Ltd—Selection made by Manager Call Centre prior to implementation of formal recruitment contract. (tenders obtained for the recruitment of Customer Service officers in the Call Centre Network which has been in place since 1 July 1997).

Melbourne metropolitan offices—Competitive restrictive tenders.

Information Technology—Public Tender.

Recruitment of Contractors

All firms are APE68 compliant.

DEPARTMENT OF SOCIAL SECURITY

The labour-hire firms were selected based on the availability of a contractor with the required skills within their agency, and the fees charged.Several firms were contacted and asked to send resumes of prospective employees which may match the skills sought.A firm was then selected, based firstly on the level that the prospective employee meets the requirements of the Department and, secondly, on the fee that the labour-hire firm charges for the placement of the person.To assist with the selection of reputable companies to contact, the Recruitment Section maintains a register of Agencies and fre quently updates that list detailing indicative costs, previous usage, general comments and feedback on the level of satisfaction of previously used contractors from the Agency.These records are usually updated every 3-6 months, to account for new companies and updates costs.

(5) CENTRELINK

Recruitment of Permanent Staff

Tender documents are available.

Recruitment of Contractors

Not applicable due to the use of PE 68 contracts.

DEPARTMENT OF SOCIAL SECURITY

DSS and SSAT did not select companies through a public tender process, instead they arranged for a shortlist of reputable companies and then contacted each company and requested a resume of suitably qualified contractors and a quote for obtaining the services of the appropriately skilled person from their list.

(6) CENTRELINK

Recruitment of Permanent Staff

Terms of reference documents are available.

Recruitment of Contractors

Not applicable due to the use of PE 68 contracts.

DEPARTMENT OF SOCIAL SECURITY

Not applicable, selection based on above process.

(7) CENTRELINK

Recruitment of permanent staff

Centrelink Call Centres

Selection panel consisted of:

. a team member of the Teleservice Branch

. the Section Manager, Geelong TSC

. the Personnel Manager, Area South VIC

. a staff member of the Human Resource Management Team.

Melbourne metropolitan offices

Selection panel consisted of HR Managers.

Information Technology Staff

Selection panel consisted of:

. Manager, IT Resource Planning and Scheduling

. Assistant Manager, Finance

. Assistant Manager, IT Human Resources Pool.

Recruitment of contractors

Not applicable due to the use of PE 68 contracts.

DEPARTMENT OF SOCIAL SECURITY

There was not a requirement for a selection panel to determine the successful tender. A decision was made by the Recruitment Section Manager based on best value for money and the suitability of the persons offered by the firm in meeting the skills and requirements of the Department.

(8) CENTRELINK

Recruitment of permanent staff

Centrelink Call Centre

The rates are available but are subject to commercial in confidence.

Melbourne metropolitan offices

The contract price was based on a flat fee of $900 for each person recruited.

Information Technology Staff

Commission for Green & Green is based on a set of standard fees for services provided.

The full recruitment process fees schedule is as follows:

Recruitment of Contractors

Commission amounts are subject to commercial in confidence.

DEPARTMENT OF SOCIAL SECURITY

The commission payable by the Department to each labour-hire firm for each person contracted for labour, where the Department put the person onto our pay system, was as follows:

Otherwise, there was no commission payable, as the costs were linked in with the salary (hourly rate), on the companies invoice for services.

(9) CENTRELINK

Recruitment of permanent staff

Total sum: (a) owed—Green & Green—$83,896; (b) total sum paid to each labour hire firm.

Recruitment of contractors

Please refer to part (3).

DEPARTMENT OF SOCIAL SECURITY

(a) The total sum paid to labour-hire firms in total in 1996-97 for SSAT contracts was $54,322.

(b) The total sum paid to labour-hire firms between 1 June 1997 and 28 February 1998 for DSS was $30,273, and for SSAT was $32,166.

(10) CENTRELINK

Recruitment of permanent staff

Total sum paid: (a) in 1996-97- $128,850; (b) between 1 July 1997 and 28 February 1998- $443,080.

Recruitment of contractors

Total sum paid: (a) in 1996-97—$17,897,564; (b) between 1 July 1997 and 28 February 1998—$24,604,476.

DEPARTMENT OF SOCIAL SECURITY

(a) The total sum paid to labour-hire firms in total in 1996-97 for SSAT contracts was $54,322.

(b) The total sum paid to labour-hire firms between 1 June 1997 and 28 February 1998 for DSS was $30,273, and for SSAT was $32,166.

(11) CENTRELINK

Recruitment of permanent staff

Projected labour requirement:

(a) February to June 1998

- It is anticipated that 50 to 100 staff could be recruited.

(b) July 1998 to June 1999

- The projection is difficult to make as it is dependant on yet to be announced, or decided Government policy initiatives.

Recruitment of contractors

It is uncertain at this stage as to what Centrelink's IT contractor requirements in the future will be.However, given the limited IT staff availability, it is expected that there will be an increasing the continuing need to use external contracting services.

DEPARTMENT OF SOCIAL SECURITY

(a) The projected labour requirement to be met by labour-hire firms in the Department and SSAT from February to June 1998 is 14 persons employed on short-term (under three months) contracts.

(b) The projected labour requirement to be met by labour-hire firms in the Department

and SSAT from July 1998 to June 1999 is 38 persons employed on short-term

contracts and 10 persons employed on mid-term (3-9 Months) contracts.This is

based on previous usage patterns.

(12) CENTRELINK

Recruitment of permanent staff

Nil.

Recruitment of contractors

Nil.

DEPARTMENT OF SOCIAL SECURITY

None of these contractors were taken on to replace staff.They are used for either leave relief, peak workload periods or specialist projects.