HRM hiring too many consultants: auditor

The Halifax Regional Municipality should consider hiring more staff after spending nearly $17 million on consultants over four years, the municipal auditor general says.

Larry Munroe looked at the money spent on consultants between 2007 and 2011. He discovered that the amount grew every year, from $3.5 million to nearly $5 million last year.

He found that 69 per cent of the contracts related to construction, such as engineering and architecture, and 55 per cent of all the money spent went to only eight companies.

Munroe said HRM could probably save money if it used its own staff to do the work or hired the professionals it needs.

"If we are hiring the same organizations often, and we're hiring for what would likely be the same kinds of expertise, it would only make sense to do the cost-benefit analysis and see if we wouldn't be better off to have those people on staff," he said.

For example, he said, the money spent on consulting fees last year could have paid for 55 full-time employees at $75,000 each.

Munroe calls for new policies that would force managers to justify hiring consultants.

HRM officials said they accept Munroe's report and will implement all of his recommendations.