18 Mar 2015: Ombudsman says agencies need to compensate on behalf of providers

The Commonwealth Ombudsman, Colin Neave, today released a report into complaints about the Australian Apprenticeships Incentives Programme.

The report concerns complaints from two businesses that were refused incentives under the program after being given incorrect advice about their eligibility from Australian Apprenticeships Centres.

The centres were contracted service providers for the then Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education. The Australian Apprenticeships Incentives Programme now sits with the Department of Education and Training.

Mr Neave said the investigation highlighted issues with Commonwealth agencies contracting out services.

“Contracting out service provision is a legitimate strategy for agencies seeking to implement programs in a cost-effective and efficient way,” he said.

“However, cost-effectiveness and efficiency should not be achieved by reducing or limiting the rights and protections that members of the public have when things go wrong.

“Agencies need to have measures in place to compensate people on behalf of their providers, where they are satisfied an error has been made.”

Mr Neave said the report also highlighted problems with the Scheme for Compensation for Detriment caused by Defective Administration (CDDA).

The scheme provides a mechanism for compensating people for loss caused by defective administration, but it does not cover contracted service providers.

“I will pursue that issue with the Department of Finance, which oversees the CDDA scheme.”

The Ombudsman will provide no further comment on the report.

The report is available at www.ombudsman.gov.au.

Media contact: Media 02 6276 3759

Date of release: 18 March 2015