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T3: Consultant bonanza brings cost to over $130 million.



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MEDIA RELEASE AUSTRALIAN LABOR PARTY

Kelvin Thomson MP Shadow Minister for Public Accountability Shadow Minister for Human Services

Sunday, 29 October 2006

T3: Consultant bonanza brings cost to over $130 million

A list of contracts provided to Parliament reveals that the Howard Government is spending a minimum of $77 million on an army of consultants to drive the T3 sale.

The vast bulk of the $77,377,598 in consultants, outlined in a list of contracts from the Department of Finance and Administration, is on top of the $20 million advertising blitz and the $37 million in broker’s commissions already revealed.

Combined, Labor believes the cost to taxpayers for T3 is at least $130 million.

The $77 million contract listing reveals a consultant bonanza, with 21 consultants, including: • $12,500,000 for a telephone information centre; • $5,375,000 for business advisory services; and

• $1,165,000 for a web services provider.

Also outlined is $6,656,908 for three contracts related to the T3 advertising blitz. It is likely that more than half of this amount (communication services and market research) is in addition to the $20 million figure announced by Senator Minchin, bringing the blitz to around $25 million. The contracts are:

• $3,322,073 for communication consultancy services; • $1,463,885 for market research services; and • $1,870,950 for advertising agency services.

The advertising agency, George Patterson Y & R, is also Telstra board nominee Geoff Cousins’ former company.

The millions of dollars being torched on the Telstra sale would be much better spent addressing our skills crisis. $130 million would train 1,400 doctors; 4,400 nurses or 2,600 engineers.

Instead, millions of taxpayer dollars will be used to line the pockets of an army of consultants who are charged with the task of taking a great Australia asset out of public hands.

Labor will be quizzing Government departments next week during Senate Estimates in an attempt to reveal the true wasteful cost to taxpayers of the T3 sale.

Link: http://www.finance.gov.au/Publications/docs/Senate_order_no_9.pdf

Contact: Patrick Pantano: 0403 502 071

T3 Contracts Department of Finance and Administration Contracts listing for Financial Year 2005-06

Link: http://www.finance.gov.au/Publications/docs/Senate_order_no_9.rtf

CONTRACTOR Subject Matter Amount of

Consideration Commencement Date Anticipated

End Date

@ WWW PTY LTD Telstra 3 project

management sub-contract - web services provider

1, 165,000.00 31-May-06 31-Dec-06

ABN AMRO ROTHSCHILD, GOLDMAN SACHS JB WERE PTY LTD, UBS AG, AUSTRALIA BRANCH

Joint contract with the three parties for Telstra 3 project management services

12,630,000.00 24-Nov-05 31-Mar-07

AUSTRALIAN GOVERNMENT SOLICITOR - VIC

Telstra 3 Sale Taskforce in-house legal counsel

980,000.00 22-Nov-04 31-Oct-06

CALIBURN PARTNERSHIP PTY LTD Business advisory services for the

Telstra 3 sale

5,375,000.00 29-Mar-05 31-Dec-06

COMMONWEALTH BANK OF AUSTRALIA Telstra 3 project management sub-

contract - banker to the issue

3,500,000.00 30-Jun-06 31-Dec-06

COMMONWEALTH BANK OF AUSTRALIA Telstra 3 project management sub-

contract - offer document secondary distribution network

1,525,000.00 27-Jun-06 31-Dec-06

COMPLETE PRINT CONSULTANCY PTY LTD Telstra 3 project management sub-

contract - print coordination and advisory services

220,000.00 24-Jan-06 31-Dec-06

DBM CONSULTANTS PTY LTD Market research advisory services

for the Telstra 3 sale

1,463,885.00 18-Apr-05 31-Dec-06

FREEHILLS Legal services for

the Telstra 3 sale 5,375,000.00 05-Apr-05 31-Dec-06

GAVIN ANDERSON & COMPANY Communication consultancy

services for the Telstra 3 sale

3,322,073.00 07-Mar-05 31-Dec-06

GEORGE PATTERSON Y & R PTY LTD Advertising agency services for the

Telstra 3 sale

1,870,950.00 01-May-06 31-Dec-06

LINK MARKET SERVICES LIMITED Telstra 3 project management sub-

contract -

13,500,000.00 21-Jun-06 31-Dec-06

application processing centre

OAKTON SERVICES PTY LTD Telstra 3 project management sub-

contract - technology framework advisory services

750,000.00 10-Feb-06 31-Dec-06

PRICEWATERHOUSECOOPE RS Internal audit services for the

Telstra 3 sale

441,650.00 05-Apr-06 30-Jun-07

SALMAT DOCUMENT MANAGEMENT SOLUTIONS PTY LTD

Telstra 3 project management sub-contract - mailhouse services

8,500,000.00 24-May-06 31-Dec-06

SKADDEN ARPS SLATE MEAGHER & FLOM International legal services for the

Telstra 3 sale

2,515,000.00 29-Nov-05 31-Dec-06

SPARKE HELMORE Probity services for the Telstra 3 sale 634,040.00 03-Feb-05 31-Dec-06

STELLAR CALL CENTRES PTY LTD Telstra 3 project management sub-

contract - telephone information centre

12,500,000.00 31-May-06 31-Dec-06

SUDLER & HENNESSEY AUSTRALIA PTY LTD Telstra 3 project management sub-

contract - communications adviser, non-English speaking background content

330,000.00 01-Jun-06 31-Dec-06

TEXT PACIFIC PTY LTD Telstra 3 project management sub-contract - graphic design services

540,000.00 26-May-06 31-Dec-06

VISION AUSTRALIA Telstra 3 project management sub-contract - print disability adviser

240,000.00 30-May-06 31-Dec-06

77,377,598