Independent News For The Australian Public Service
Edition Number 410. Updated Tuesday, 20 May 2014

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Unfunded redundancies claim rejected

The Minister for Finance, Mathias Cormann, has rejected media reports that the Australian Public Service does not have the money to fund its program of redundancies.

Mr Cormann said it was true that the previous Government's purported savings measures prior to the 2013 election equated to a reduction of 14,500 Public Service positions and that Labor neither budgeted for nor announced these reductions.

Gov't to draw on Contingency Reserve

"As we announced at the time, last year's MYEFO corrected this legacy issue by provisioning in the Contingency Reserve for what had been unfunded redundancies associated with these reductions," he said.

"Government Agencies have also made provision for voluntary redundancies within their own budgets."

Mr Cormann said the claim by Labor and reported by the media that the Budget did not include sufficient provision for redundancy payments was simply not correct.

"The measures for mergers and abolitions of Agencies in the Budget also include funding for redundancies," he said.

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