Department of the Legislative Assembly, Northern Territory Government

Mr STIRLING - 2001-07-03

Three years ago legal expenses across the whole-of-government cost $8.7m. When asked last week about the cost of legal services you conservatively stated that their cost, excluding the Power and Water Authority litigation, was $20.8m over the 11 months to 31 May this year. The anecdotal evidence is strong that legal firms charge government for every minute of their time. Some firms immediately pass on the work interstate so we simply pay for middle men and do not even get the benefits of local employment in those cases. With the cost of legal services more than doubling in the last three years how does your outsourcing policy represent value for money to the taxpayers of the Territory?

ANSWER

Mr Speaker, first, I gave a full answer to that question in the budget debate last week. Secondly, the Shadow Attorney-General refuses to acknowledge the facts. The facts are that legal costs have not doubled at all. He simply does not accept the fact that some issues that were counted as part of the Attorney-General’s legal costs are no longer counted as part of the Attorney-General’s legal costs.

With regard to outsourcing costs, they go through a tender system. They are checked by those who have expert knowledge in value for money on these issues. It is watched over by Treasury in terms of Treasury’s opinion of whether or not we are getting value for money for our outsourcing. We must also remember the intent of the outsourcing was primarily to give more robustness, expertise and strength to our own local legal profession. In total, I am advised by Treasury that the outsourcing costs are within their predictions and certainly there is no issue in terms of ceasing or reducing our outsourcing arrangements at this time.
Last updated: 09 Aug 2016