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Wednesday, 10 February 1999
Page: 2416

Mr McClelland asked the Minister for Employment, Workplace Relations and Small Business, upon notice, on 24 November 1998:

(1) In contracting with other companies or individuals to provide employment services, did his Department inquire whether the companies or individuals intended to subcontract the services; if so, (a) what inquiries were made and (b) did the inquiries include ascertaining the commission which the companies and/or individuals intended to make on the sub-contracting arrangements; if so, what commissions will be obtained by the companies or individuals.

(2) If he will not provide the information sought in part (1), why not.

Mr Reith (Workplace Relations and Small Business) —The answer to the honourable member's question is as follows:

(1) (a) Yes. The Employment Services Market Request for Tender provided for sub-contracting arrangements subject to approval by the then Department of Employment, Education, Training and Youth Affairs (DEETYA). Tenderers were required to provide the name and address of sub-contractors.

Where sub-contracting arrangements were included in a tender response, tenderers were required to insert the details in the Employment Services Contract prior to it being executed by DEETYA. These details were subject to a check by DEETYA.

Where a provider has proposed to sub-contract the whole or a substantial part of the services, subsequent to signing the Contract, they are required to seek approval from the Department.

The process for approval involves Job Network members making a formal request including a Declaration. The Declaration, which is signed by an authorised party of the Job Network member, clearly outlines acknowledgment by the Job Network member of its contractual responsibilities in the sub-contracting relationship.

Job Network members must explain how the work undertaken by the sub-contractor is consistent with the strategies in their tender bid. In particular they must provide information on the sub-contractor in relation to the:

. premises, facilities and equipment to be used by the sub-contractor;

. relevant experience and expertise of staff employed by the sub-contractor; and

impact on sites at which the Job Network member had been contracted to deliver services.

Checks are conducted through the Australian Securities and Investments Commission or appropriate State Registrars of Associations to verify the bona fides of the proposed sub-contractor. In addition, Departmental records are checked to determine if the proposed sub-contractor has been a past provider to the Department.

(1) (b) No. Commercial arrangements, in respect of sub-contracting, are negotiated between a Job Network member and a sub-contractor. The Commonwealth is not a party to these negotiations and does not collect information regarding any commercial arrangements of Job Network members to which the Commonwealth is not a contractual party.

(2) See 1 above.