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Top bureaucrat moves between PM's department and health insurer Bupa

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One of the country's top decision-makers has been seconded from the Department of Prime Minister and Cabinet to Bupa, the country's largest health insurer that is set to benefit the most from the $22 billion National Disability Insurance Scheme.

Rebecca Cross, the department's head of domestic policy was originally seconded under a program run in partnership between the Australian Public Service Commission and the Business Council of Australia, but in the first arrangement of its kind, has now extended her contract at the multi-billion-dollar insurer directly through an arrangement with Prime Minister and Cabinet.

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The move has raised questions over a potential conflict of interest when she returns next year from the multinational insurer where she was acting as their head of government relations.

The Public Service Commission program has so far secured placements for 20 of the country's highest public servants in state and federal government's across companies such as Virgin, Deloitte and Qantas.

Executives in NSW have also joined under an memorandum of understanding signed by former premier Mike Baird, now an executive himself at the National Australia Bank.

In a boon for the private health insurance industry, a second unidentified senior public servant in the Department of Prime Minister and Cabinet has also been seconded to Australian Unity, another multi-million dollar company that will benefit from the full roll out of the NDIS.

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They are among those taking part in a bid to reform how government interacts with businesses. The public bureaucracy has previously been criticised for being detached from how things work in private industry.

Senator Penny Wong first raised concerns about Ms Cross' appointment in Senate estimates when the program began last year.

"It is directly involving liaison with government while she remains, whilst on leave without pay, an employee of the government and in fact a member of the Senior Executive Service," she said.

Bupa recently announced a multi-million specialised disability clinic in Melbourne as it looks to expand its care program under the NDIS to the more than 4.3 million Australians living with a disability. It is also positioning itself as a dominant player in the NSW disability home care service as the NDIS looks to promote more competition in the sector.

Jennifer Westacott, the chief executive of the Business Council of Australia said programs like this help prevent "departments becoming siloed from the real economy".

"Australia can only gain by different sectors of the economy talking to each other and gaining deeper understanding of the other side," she said.

On Friday, Australian Public Service Commissioner John Lloyd said it would be up to secondees, their home agency and the host organisation to identify any conflicts of interest.

A document seen by Fairfax Media shows recruits are required to list any details of a discussion, meeting, event or an activity that is identified by either party as likely to cause a conflict.

Ms Cross said the experience would help the public service innovate.

"In business the absolute focus is on being competitive and providing the best possible service for customer," she said. "If you get that wrong, your business declines and dies, those things are there in the public service but it's just sharper in business."

She said managing conflicts of interest was common in the senior ranks of the public service.

"It just means you have to be very conscious that you declare it and that you are not involved in any decision making," she said.

She added she was unlikely to return to her old portfolio given the conflict hurdles this could create.

"It might be in the service delivery area, it might be a different policy area my guess is I wouldn't go back in to the health area that is looking at private health insurance," she said.