Leased executives in the state service

State Services Minister Trevor Mallard said a survey of the number of leased executives in government departments showed it was not a widespread problem.

However, he said guidelines would be developed for departments, in line with government attempts to a more standardised approach to management practices in the state services.

"The survey shows an average of fewer than two 'leased executives' in government departments and crown entities," Trevor Mallard said.

"That is not a level that causes me great concern. It is, however, important that departments are aware of our expectation as to when it is appropriate to employ leased executives."

The report was compiled following questions that became apparent when the State Services Commission looked into the arrangement the Specialist Education Services (SES) had with Celia Lashlie.

"That case raised bigger questions about leased executives in departments and entities. The Government wanted to know more about why leased executives are used, under what arrangements, and whether we should review those arrangements.

"In summary, the SSC report says that there can be good reasons for using leased executives, provided they are managed carefully.

"The Government's aim now is to ensure that where the practice is employed, departments ensure that there are good reasons, and that departments and chief executives minimise the drawbacks.

"The SSC report finds that, generally, departments lease staff where it would be cheaper than taking on specialised, permanent staff for short-term, intense work. Further, leasing allows departments to take on staff quickly in order to address a pressing need in a particular area.

"The Government's aim is to grow the capacity of the State sector. So, leasing should be discouraged if leasing is a substitute for growing people who have skills that the state sector needs in the long-term.

"Further, we expects agencies to be run and led - for the most part - by permanent employees. So, agencies should avoid leased staff being used in roles where they will be the public face of the agency - either internally or externally - over an extended period."

Trevor Mallard said the data that came out of the SSC report was not surprising.

"Putting it into perspective, there are about 30,000 people working in the core public sector. For less than one hundred of them to be leased executives is not a major problem," Trevor Mallard said.