I refer to the Government's pre-election policy commitments regarding the use of consultants by public agencies.

The Government is committed to reducing spending on unnecessary consultants, particularly the use of consultants for "head hunting" and publicity/public relations purposes.

While the Treasurer's moratorium on expenditure on consultants has been lifted, on the basis that specified reductions in expenditure will be achieved, Chief Executive Officers are expected to apply a strict test of essentiality in the use of consultants.

To assist in implementing Government policy to strictly limit expenditure on recruitment and publicity/public relations consultants, from the date of this Circular public agencies are not to engage recruitment and publicity/public relations consultants without prior approval from the Public Employment Office. A strong business case, demonstrating cost effectiveness, will be necessary before approvals will be given.

This Circular does not have any effect on the arrangements for NSW public agencies to recruit staff based on the order of merit from the Administrative Service Test conducted for the Australian Public Service. Recruitment of staff under this scheme may be organised by contacting State Staff, a unit of the Commonwealth Department of Employment, Education and Training.

The policy set out in this Circular applies to public service departments and administrative offices, statutory bodies outside the public service and State Owned Corporations.

KEN CRIPPS
Commissioner

DATE: 6 September 1995