The Australian Prudential Regulation Authority (APRA), which had been experiencing staff retention difficulties, says a recruitment drive for senior managers with at least 10 years’ experience has paid off.

In APRA’s annual report, Chairman John Laker says the prudential regulator has had a substantial increase in staff and expenditure over the past five years.

“This recruitment, together with relatively low turnover at the senior echelons, has given APRA a senior management cadre made up of a relatively stable, strong group of experienced staff,” he said.

“However, retaining junior to middle-level staff with three to five years’ experience is a continuing challenge. Such staff become most attractive just at the time they become productive to APRA.”

The staff who resigned during 2005/06 had an average of 3.2 years of prudential supervision experience.

The annual report shows staff numbers rose from 407 in 2001/02 to 592 last financial year. Over the same period, operating expenditure went from $55.8 million to $88.1 million.

“APRA reached its staffing targets during 2005/06 and at year-end staff numbers…  were 592, an increase of 2% over the year,” Dr Laker said.

APRA’s total operating expenditure in 2005/06 was $92.1 million, which included $2.3 million related to the HIH Royal Commission.