My Department is now at an advanced stage in its first phase of a two-phase procurement of new employment services.
The new service is not a privatisation of Government services. These services have been outsourced by the State since the mid-1990s. Instead, it is a shift to competitive procurement as required by good governance and the State's legal obligations.
The possibility of retaining the current LES model, which was developed a generation ago, with annual contracts under a closed procurement process, was not an option. My Department has been given clear legal advice from the Chief State Solicitors Office and the Attorney General that this process cannot continue and there needs to be competitive procurement for future public employment services. In addition, my Department is responsible for ensuring good governance of employment service provision, which requires greater oversight and enhanced visibility of service provision.
My Department cannot ignore this legal advice. Nonetheless, officials are striving to ensure the new model does not create any barriers to the community and voluntary sectors or inhibit their ability to submit a high-standard tender for future services
Phase two of this process, to commence shortly, will see the Regional Employment Service model rolled out across the State. The learnings from the limited phase one procurement, currently underway, will be factored into the finalisation of the phase two procurement process.