September 7, 2011.
IF VICTORIA's public servants are feeling a little unloved and poorly paid, perhaps they should retrain as contractors and move to the government's IT agency CenITex.
A leaked memo on the agency's wages has revealed its top 10 contractors earn more each day than Premier Ted Baillieu. Most earned more than the agency's chief executive, who took home the tidy sum of $355,491.
The memo, obtained by Fairfax, shows the 10 contractors, some acting as CenITex senior staff, earn salaries ranging from $353,228 for security consulting, to $419,614 for project managing
. Mr Baillieu's pay packet is between $330,000 and $340,000 The document also revealed CenITex, which centralises information technology services across the Victorian public sector, relies heavily on contractors, employing 269 - more than a third of the 769 staff.
Fairfax revealed yesterday that Victoria Police has been asked to investigate a CenITex tender process after
an audit revealed two staff awarded themselves a contract, garnering work worth $1.5 million.
Six contractors and staff were sacked last month, and the Baillieu government has ordered an organisation-wide review.
The memo, dated June 2011, revealed CenITex had 190 contractors earning more than $150,000 annually
, but only 11 permanent employees earning a similar wage. Eighty-five contractors were in the $200,000 to $250,000 wage bracket
, compared with only two permanent staff. One CenITex source yesterday defended the high pay rates: ''That's the contracting market. It's particularly rampant in the IT industry where there is a shortage of skills, so the market has to pay the going rate.''
But a former CenITex staffer said there were too many contractors earning too much money: ''It's outrageous, they've got their snouts in the trough.''
Fairfax believes the public sector union has been concerned about the agency's reliance on external consultants and the replacement of public servants with highly paid contractors. ''Full-time employees are replaced by contractors - that's been happening regularly,'' said one union source, who declined to be named. ''And it's usually at a much higher rate.''
Two of the top 10 contractors in the memo have online profiles showing they are acting as senior executives in CenITex and earn as much, or more than, the then acting chief executive Jim Monaghan.
An IT employment expert, who did not want to be named, told Fairfax it was difficult to know whether the contract payments at CenITex were justified without knowing how many hours were worked. ''If they are only doing 40 hours per week, then the CenITex salaries seem very high,'' the expert said.
Shadow finance spokesman Robin Scott said the figures highlighted the hypocrisy of the Baillieu government, which had promised to cut contractors and consultants.
''When in opposition, they railed against excessive use of contractors and high levels of remuneration in CenITex and, frankly, the document speaks for itself,'' Mr Scott said
.