The Community and Public Sector Union (CPSU) says 12,000 public sector jobs will be cut and the Public Service will receive a further 0.25 per cent rise in the efficiency dividend under the incoming Coalition Government.
savings to hit PS
The additional increase in the efficiency dividend will take it to 2.5 per cent next financial year which the CPSU estimates could result in 6,250 job losses.
National Secretary of the CPSU, Nadine Flood said this would result in Centrelink queues getting longer, fewer people inspecting at Quarantine, and fewer people checking the weather at the Bureau of Meteorology.
Her comment came after new Treasurer, Joe Hockey had unveiled another $9 billion worth of savings, more than half of it from slashing foreign aid and reducing the number of Public Servants.
Mr Hockey confirmed Fairfax Media's report that the savings would improve the Budget bottom line by just $6 billion over four years.
He said that reducing the growth in foreign aid by $4.5 billion would mean more money to spend on infrastructure projects, including $1.5 billion on Melbourne's East West Link, $1.5 billion on Sydney's WestConnex and another $1 billion on an upgrade to Brisbane's Gateway Motorway.
He said an extra $1 billion would come as a result of increased economic activity following the scrapping of the carbon tax.
Also predicted were a reduction in Government debt by $16 billion and a $650 million “re-phasing” of Murray-Darling Basin water buy-back programs.
Mr Hockey said the increase in the Public Service efficiency dividend would be achieved by targeting Government advertising, consultancies and travel.
“The Coalition forecasts this will save more than $400 million over the forward estimates,” Mr Hockey said.
He said a further $38 million would come from reversing Labor's promised additional funding for the Australian Curriculum, Assessment and Reporting Authority.
Meanwhile, $5 million would be saved by scrapping the planned development of an Australian Baccalaureate, and $10 million would be redirected from the Better Schools program to the Coalition's Secure Schools policy.
“The Coalition also expects to earn $93 million this year through a ‘stopping the boats dividend’, which will grow to a total of $1.1 billion over the next four years,” Mr Hockey said.
“That will be balanced by $75 million worth of costs this year by keeping the fringe benefit tax exemption on company cars. That cost will grow to $1.9 billion over the next four years.”
He said a 1.5 per cent levy on big business to cover the paid parental leave scheme will earn $300 million in each of the first two years of operation.
This is supposed to increase to $3.8 billion in 2016-17, though it is unclear what is behind the revenue jump.
Edition 378, 10 September 2013