An inquiry will probe the use of consultants within the NSW public service.

The inquiry will be headed by Abigail Boyd, NSW Greens MP and chair of the public accountability committee.

Boyd has expressed worries about the “over-reliance” on consultants in the NSW public service, stating that the purpose of the inquiry extends beyond concerns of breaches in confidentiality and trust. 

She says she intends to investigate the extent to which private consulting firms have penetrated the government apparatus, leading to the displacement of public sector employees and a decrease in self-sufficiency.

This inquiry follows the ongoing PwC confidential tax leak scandal, which has been the subject of repeated questioning during senate estimates. 

A report from the Audit Office of NSW recently revealed that over $1 billion was spent on consultants between 2017-18 and 2021-22. Most of the state's agencies were criticised in the report for their lack of strategic and effective use of consultants.

Approximately 27 per cent of the $1 billion spent on consultants was allocated to the Big Four consulting firms (KPMG, EY, PwC, and Deloitte). 

In response to the report, former NSW Treasury secretary Paul Grimes highlighted the crucial role played by outside consultancy expertise during the COVID-19 pandemic, which necessitated a swift government response.

Premier Chris Minns had previously pledged to reduce the reliance on consultants in the public service before the election. 

However, his government recently announced a two-year pay freeze for senior public servants and parliamentarians, a move that unions deemed “distracting” as they continue to call for a pay raise.