Tasmanian Health Department Faces Scrutiny Over $61 Million Labour Hire Deals

Legislative Council records show the Tasmanian health department’s Bluegum Digital Transformation Project involved 742 labour hire contracts, each below the $99,999 threshold that permits direct award. These contracts were distributed among 65 companies, with 22 firms receiving ten or more contracts; Ignite Project Services Pty Ltd obtained 86 contracts worth $6.96 million. To date, $50.6 million of the $61 million allocated has been spent.

Independent MLC Bec Thomas called for an explanation, emphasizing the need to assess the aggregate procurement practice. The government responded that a revised procurement framework, including a structured quotation process for sub-$250,000 projects and a procurement review committee, governs the arrangement. Auditor-general Martin Thompson also flagged multiple breaches of treasury instructions in the department’s procurement history.