The National Institute of Economic and Industry Research warns the rush to labour hire and contracting out is exposing taxpayers to a $14.38 billion loss, every year.
That figure, spent on nation-building, could wipe out the public health crisis by funding 42 new teaching hospitals or carrying out an extra 5.6 million operations annually.
Alternatively, it would fund the construction of 770 new high schools or the employment of an additional 1.5 million teachers.
AMWU secretary, Doug Cameron, presented the economic research as part of his union's submission to a parliamentary inquiry into contracting.
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