Shared Services another step towards closure

The State Government has brought to an end centralised corporate services for government agencies with the Department of Finance the last agency to transition out of the failed Shared Services program.

The program to return corporate services to 59 agencies began in early 2012 and with a target of exiting all agencies from the Shared Services Centre by December 2013.

Finance Minister Mike Nahan said this was a significant challenge but the Department of Finance had managed the project smoothly and efficiently.

"It has taken some time to extricate ourselves from the terrible mess that Labor oversaw but I am pleased to say we have achieved the decommissioning of the Office of Shared Services on time and on budget," Dr Nahan said.

"In 2007, Labor claimed the Office of Shared Services would eventually save our public sector about $55million a year once fully implemented.  Sadly it was never properly managed and cost West Australian taxpayers $435million."

The Office of Shared Services opened in 2005 to reduce the overall cost of providing corporate services such as finance, payroll and human resources to the public sector.  However, the program required significant additional funding and battled escalating costs.

In 2011, the Economic Regulation Authority found there had been no net savings to government from the Shared Services Centre and recommended corporate services should be returned to each agency.

The decommissioning, including the cost of reinstating corporate services in agencies, had a net debt impact of almost $90million.

"A part of the program saw the need to place 374 permanent public servants elsewhere and that has been successful with almost all staff having obtained new roles or having left the sector," the Minister said.

All the decommissioning work is scheduled to conclude on March 31, 2014

Minister's office - 6552 5700