AUSTRALIA
DFAT axes contractual workers as budget faces 'structural problems'

The Department of Foreign Affairs and Trade (DFAT) has axed dozens of contract staff as it faces mounting internal anxieties over its financial woes.

FAILURE OF OUTSOURCING/CONTRACTING OUT

By foreign affairs reporter Stephen Dziedzic ABC

A former DFAT staffer says contractors are "not conducive" to maintaining successful diplomatic relationships.(Supplied: DFAT/John Gollings)

The Department of Foreign Affairs and Trade (DFAT) has axed dozens of contract staff as it faces mounting internal anxieties over its financial woes.

Key points:
One contractor told the ABC about 100 people had been let go, following 60 full-time staff
The Opposition has criticised the Federal Government's increased use of outside contractors
DFAT's head has said the department faces "significant pressure" on its budget, especially in light of COVID-19

Last week, the department said it would cut 60 full-time positions — 50 in Canberra and 10 overseas — to help it cope with a budget shortfall.

DFAT said it would hit that target through natural attrition rather than sacking officials.

However the ABC has been told DFAT has separately terminated several contract staffers in recent weeks, including those working in information technology (IT) and policy roles.

A former DFAT contractor told the ABC small groups of people were pulled into meetings and informed their contracts were being terminated or ended because of "budget constraints".

It is not clear how many contractors have been removed.

A second former contractor estimated about 100 people had been axed, while a third said the figure could be higher than that.

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In a statement, a spokesperson from the department said: "DFAT continues to be properly resourced to deliver consular and passport services, and deliver on the Government’s foreign policy, trade and development agenda.


"We also continue to responsibly manage our budget to enable us to remain on a sustainable financial footing in these difficult economic times."

The controversy has also highlighted internal unease about the way the department has used contract labour to do core diplomatic work.

While the vast majority of policy roles in DFAT are still held by full-time public servants, the ABC has been told some DFAT managers facing staffing constraints have been forced to use contractors to "fill the gap".

"Casual contracts are not conducive to maintaining enduring diplomatic relationships," one former DFAT staffer told the ABC.

Controversy over contractors is not limited to DFAT — Labor has criticised the Coalition for spending at least $2 billion on outside contractors in the past six years, accusing it of wasting money in order to avoid arbitrary staffing caps.
Some commentators have urged the Government to boost funding for Australia's diplomatic efforts.(Reuters: Darren Ornitz)
Critics say DFAT inadequately funded to fulfill operations

While DFAT has grappled with financial pressures for several years, the debate over its budget has flared suddenly in the past two weeks.

Several foreign policy heavyweights have urged the Government to boost funding for the department, saying it does critical work and needs more money to effectively tackle the expanding array of geopolitical challenges facing Australia.

Public sector unions and the Federal Opposition have also accused the Coalition of running down Australia's diplomatic network.

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One official told the ABC DFAT's budget was facing "structural problems".

They said the Federal Government had directed the department to expand its operations in several key areas but had not given DFAT additional funding to cover it.

The coronavirus pandemic has also placed financial pressure on the department, which has provided flights and accommodation to several-hundred overseas staffers and family members.

Last week, the acting secretary of DFAT told staff in a memo "the department's budget continues to be under significant pressure and this will only increase".

That memo was leaked to the media, frustrating senior officials.

Earlier this week, DFAT secretary Frances Adamson warned staff not to send internal notes to the press.

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