‘End big four consultancy cronyism’ in the NDIS: Bill Shorten

He promised: “This stops. We will lift the cap on public servants in the National Disability Insurance Agency [NDIA] and develop a coherent workforce strategy to engage the sector in partnership with people with disability, families, advocates, the higher education sector, workers and their unions, and providers.”

Mr Shorten said last year the government spent $17 million on legal bills, including expensive private lawyers to face down people with a disability representing themselves at the Administrative Appeals Tribunal.

“Alas when money needs saving in the NDIS this mob look at the lawyer, the consultant, the thief, and the person in the wheelchair. And you know who they squeeze every time.”

Mr Shorten, who helped create the NDIS during the Gillard government and led Labor unsuccessfully to the 2019 election, called on minister Linda Reynolds to tear up $339 million worth of contracts in place with eight private contractors for the delivery of controversial independent assessments for scheme participants.

Auditor-General’s data shows job cuts under the Abbott, Turnbull and Morrison governments have reduced the public service workforce back to Howard-era levels, while outsourcing and contracting dollars being spent because of the “need for specialised or professional skills” have increased dramatically.

Spending in the category has grown from about $350 million annually in 2009-10 to nearly $450 million before the COVID-19 pandemic.

The big four consulting firms booked more than $600 million in federal government contracts in the 2019 financial year, with KPMG outpacing rivals to take about a third of the spend.

Last week former NDIS board member John Walsh – who helped write the 2011 Productivity Commission report which set out the case for the scheme – said fully funding all participants would cost taxpayers $50 billion a year, more than twice the current budgeted amount.

Mr Shorten disputed the figure and said more savings could be found within the existing budget. He expressed hope a future Labor minister for disability would be someone living with disability themselves.

“The agency running the scheme has to be a market steward and leader not just delegating all problems to the market,” he said

“The NDIS is being poorly run, it is under attack and Australians with disability are suffering.”