No. 2

A LEANER, MORE FOCUSED PUBLIC SERVICE

Consolidations, elimination of duplication and reduced overheads will help the Government ensure that more taxpayer dollars reach their intended destination, Treasurer Jon Stanhope said today, announcing a range of streamlining measures that will achieve potential savings of $187 million over 4 years.

“In a climate when government is simultaneously confronted with the need for budgetary restraint, and a community clamour for ever greater quality and range of government services, it is essential that we strive for the greatest possible efficiency from the agencies that deliver those services,” Mr Stanhope said.

Significant changes to public-service structures announced as part of the Budget include:
•	the creation of a shared services centre for the delivery of corporate service functions;
•	the absorption of the Department of Economic Development and the Small Business Commissioner into the Chief Minister’s Department and the integration of sport and tourism functions, including the management of Canberra Stadium and Manuka Oval, into the Department of Territory and Municipal Services;
•	a reduction in the number of advisory boards and committees;
•	the adoption of a statutory employer contribution rate of 9% superannuation for new employees, in line with other states and territories and down from the current rate of 15.4%;
•	the replacement of six-cylinder vehicles in the government fleet with four-cylinder vehicles, and an overall reduction in fleet size;
•	the rationalisation of office accommodation to eliminate excess capacity;
•	the establishment of a central regulatory office to encompass the functions of the Office of Fair Trading, the Registrar-General’s Office and ACT Workcover; and
•	the integration of the Emergency Services Authority into the Department of Justice and Community Safety.

“The ACT’s public-sector costs are, on average, 20 to 25 per cent higher than the national average and in most cases the outcomes don’t fully reflect this additional expenditure,” Mr Stanhope said. 

“As a small city-state we must maintain a public sector appropriate to our size and capacity. 

“The measures announced today are designed to maintain or improve outcomes for the community, while reducing many of the overheads and the duplications associated with maintaining a large number of small structures.”