The Queensland Government is proposing a new procurement and recruitment model for the engagement of ICT contractors. The proposed model is for the replacement of individual departmental and agency panel arrangements, and direct contracts, for ICT recruitment and agency managed ICT contingent labour with a single consolidated procurement arrangement. This new arrangement will be based on a single Master Vendor or Broker that will be responsible for sourcing and contracting all agency managed ICT contingent labour. The objectives of the new model are to help the Queensland Government reduce cost of ICT contractors by at least 5-10%, improve the transparency of performance of ICT contractors, provide governance of agency use of ICT contractors and build a single talent pool of ICT contractors for more flexible deployment across multiple departments or agencies. The Queensland Government has also flagged that this proposal if successful will be extended to other ICT contract labour sourced from ICT consultants and ICT service providers. Savings achieved by the Queensland Government through this arrangement are proposed to be directed to other priority areas as determined by the Government. To date the working hypothesis of the Queensland Government is that no negative impact will be generated for the Queensland economy on the basis of the proposed model. Although, there has been acknowledgment that some recruitment agencies may be affected if they have developed an unhealthy dependency on Queensland Government business, as their primary client. Based on Longhaus’ analysis of the Queensland Government ICT contractor and consultant market Longhaus have calculated that within a year of implementation of the proposed model, the potential economic impact through recruitment industry revenue losses in Queensland would approach $220 million. Further, the model would directly compel the loss of 700 support staff jobs within Queensland (or almost 1% of the Premier's election job creation pledge), equate to average company revenue write-downs of 37%, and the cessation of up to 354 companies.