| Abstract: |
This Discussion Paper is part of a wider contemporary history project
examining the growth and role of the commercial consultancy and contractor
market within the public sector in Australia since the neo-liberal turn in the
mid-1980s. The paper considers evidence as to whether the role of the big
international accounting firms within the public sector was ‘neo-liberal’
in nature, either as a result of ideological and policy advocacy or technical
facilitation of pre-set neo-liberal directions. The extent to which these
firms (currently PwC, KPMG, EY and Deloitte) are seen as integrated or
fragmented organisations has some bearing on this question. Hence, the first
quarter of the paper sketches the historical broadening-out of the firms from
accounting to a wider range of services, the debate over whether they have
functioned as global corporations or networked partnerships, the
rationalisation of the leading firms over the past three decades and the
relatively sparse commentary from political scientists about the significance
of the firms and other commercial consultants for public policy and
administration in Australia. The second quarter of the paper points to the
role of the firms in regard to two markers of a neo-liberal policy direction:
privatisation of government business enterprises and particular tax policies
and practices. Drawing on qualitative sources, it argues that while the firms
made some contribution to the agenda-setting process in both areas, in tacitly
(privatisation) or explicitly (taxation) signalling their broad policy
preferences, they played a more fundamental role in detailed policy
formulation and implementation – in easing the path of privatisation and
corporate tax minimisation. The second half of the paper summarises original
research by the author in regard to official public listings of consultancies
and contracts at the national government level. This quantitative analysis
yields important findings: that overall spending on the firms displayed a
long-term, consistent and strong increase, both in absolute terms and relative
to other consultancies and contractors; that this spending went far beyond
accounting and auditing to many areas of management, though with financial
analysis likely to underpin management inputs; and that a good deal of this
work appeared to be oriented to program content and policy-relevant tasks.
otwithstanding these findings, the paper emphasises that the extent to which
this work confirmed to neo-liberal markers – such as support for private
modes of provision and greater competition – cannot be readily confirmed,
due to limitations in the official summary data. Such confirmation can only be
achieved by qualitative case studies.The paper acknowledges that, as the firms
have broadened their personnel and services over the three decades, much of
the management and technology work of the firms in the public sector is
unlikely to be intrinsically neo-liberal but potentially compatible with other
philosophies of the public sector. Nonetheless, the growing presence of the
firms within the public sector does erode notions of public sector capability
and distinctive ethos. The paper concludes with a brief pointer to how the
foregoing discussion, and further research, can be related to the academic
literature on the differing roles played by commercial consultants in relation
to clients, ranging from legitimation and facilitation of client preferences
through to independent advice and learning. |