Hired Guns: Local Government Mergers in New South Wales and the KPMG Modelling Report

© 2017 CPA Australia Across the developed world, including Australia, public policymaking now rests heavily on commissioned reports generated by for-profit consultants, contrasting starkly with the earlier customary reliance on the civil service to provide informed policy advice to political decision makers. Dependence on commercial consultants is problematic, especially given the moral hazards involved in ‘hired guns’ providing support for policy ‘solutions’ desired by their political paymasters. This paper provides a vivid illustration of some of the dangers flowing from the use of consultants by examining the methodology employed by KPMG in its empirical analysis of the pecuniary consequences of proposed municipal mergers as part of the New South Wales’ (NSW) Government's Fit for the Future local government reform program. We show that the KPMG (2016) modelling methodology is awash with errors which render its conclusions on the financial viability of the NSW merger proposals fatally flawed

Policy-Based Evidence Making in Local Government: The New South Wales’ Municipal Merger Program, 2011 to 2017

Contemporary public policy-making relies heavily on commercial consultants for specialised advice. In this paper, we examine the problematic nature of this phenomenon by considering the controversial forced amalgamation programme in New South Wales (NSW) local government over the period 2011 to 2017. By way of a critical examination of two key consultant reports underlying the NSW municipal mergers, we show that the failure of this programme to achieve its intended aims is due in large measure to the nature of the externalised advice on which it was based and the manner in which that advice was solicited from commercial consultants

Port Botany's Landside: Market Pricing to Address Congestion

Endemic congestion at the road landside interface at Port Botany, Sydney results from coordination problems within the supply chain. These problems cannot be solved through the vertical integration of participants in the supply chain because of competition law considerations, and other non-price solutions are unworkable. Government intervention is warranted, but in a minimal form targeted at the facilitation of slot pricing. This limited intervention would allow market dynamics to achieve an efficient solution. Copyright (c) 2009 The Economic Society of Australia.