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The Integrity Commission has warned the Tasmanian local government sector is exposed to perceptions of nepotism and cronyism in recruitment.

In a report tabled in State Parliament today, the Commission recommended that the Minister for Local Government develop a model recruitment policy aimed at addressing the issue.

The recommendation aligns with those made by the Tasmanian Audit Office in a 2021 report which examined appointment processes for general-managers.

The report also recommended that the Local Government Act be amended to reintroduce a provision obligating councils to appoint employees based on merit.

“This was removed in 2005 and while we are unsure of the government’s intention at the time, the Commission is of the view this is an important legislative measure to protect the public interest,” Integrity Commission CEO Michael Easton said.

“However, legislation without clear policy guidelines on how people should administer the law leaves both individuals and organisations exposed.

“Therefore, we have recommended that the Minister for Local Government develop a model policy for all councils in Tasmanian to adopt.”

A recent investigation titled Investigation Smithies examined recruitment processes involving alleged misconduct at a Tasmanian council.

Several of the jobs in question were awarded via a process called direct appointment which means the roles were not advertised – internally or externally.

“There was also no policy governing recruitment processes at the council and therefore no requirement to disclose any conflicts of interest,” Mr Easton said.

“In this investigation we found there was a failure to recognise that a professional association – where two people have worked together before – was a potential conflict of interest.

“This was followed by a failure to ever declare that potential conflict which in turn led to a complaint and these issues being investigated.

“Having a clear legislative and policy framework alongside thorough training which ensures people understand those policies, protects the reputation of the people and organisations involved, and promotes workplace harmony.

“And getting the right people into the right roles benefits not just the council itself but also ratepayers who receive better public services as a result.”

Key failures identified in the investigation included:

  • no selection reports or documentation showing why a selected applicant was the best one based on merit
  • professional relationships leading to bias and different treatment of applicants, at times favourable and at times not favourable, and
  • no documentation of the reason for using a direct appointment process rather than an open and competitive one

Media release by Michael Easton Chief Executive Officer

Full report (PDF, 1.8 MB)

Media contact

Lachlan Thompson, Team Leader Research and Evaluation
lachlan.thompson@integrity.tas.gov.au
Ph: 1300 720 289