Australian Greens: Labor's response to consultancy inquiries woefully inadequate

After taking years, the federal government has finally responded to the recommendations of two parliamentary inquiries into the consultancy sector, prompted by the PwC tax scandal. Unfortunately, the government has failed to meet the moment. 

The two parliamentary inquiries made 52 recommendations between them, which were agreed to by Labor, the Liberals and the Greens, which gave the government an opening for reform across the accounting and consulting sector. 

The reports made clear recommendations, including lowering partnership caps, separating audit from non-audit services, improving whistleblower protections and not allowing PwC to tender for government work until all ongoing investigations have concluded.

The Greens say the government's responses are woefully inadequate but not surprising and call on the government to legislate the reports' recommendations instead of relying on voluntary guidelines and endless reviews.

Lines attributable to Australian Greens spokesperson for finance and public sector Senator Barbara Pocock:

"The government's response to this consultancy crisis is woefully inadequate. We discovered a tidal wave of malpractice, poor governance and structural failures. The government's response fobs off our report with baby steps that don't meet the scale of this crisis.

"So much of the Parliament's time and resources have been spent uncovering unethical behaviour in the consultancy sector. The government was provided with clear recommendations for cleaning up the sector but instead of agreeing to them, Labor continues to greenlight unethical contractors. 

"This is a government of gestures. Despite the extensive evidence and comprehensive recommendations, the government is once again choosing to tinker around the edges, instead of committing to actual reform.

"Political donations data released this week shows that big consulting firms are still giving large donations to the government. It's a straightforward conflict of interest - it's no wonder Labor is failing to act. Three of the Big 4 consultancy firms continue to donate to the government - this is just wrong and the government is refusing to take action on this.

"The government continues to distance itself from a myriad of consultancy scandals, which won't go away. The fact that the government let PwC back into the fold before the TPB, AFP and NACC investigations had concluded is both baffling and pathetic. Astonishingly they've refused to comment on PwC continuing to hide crucial information from the Senate. 

"The government's refusal to clean up the unethical practices rife across the consultancy sector is the reason why the Greens introduced a bill to parliament. We must close the legal loopholes that allow government contractors who behave unethically to get away with it."

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