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Federal Government strategy for reducing size of Public Service
The Hon. Peter Reith, MP
Minister For Industrial Relations
Leader of the House of Representatives
Parliament House Canberra
The Minister for Industrial Relations and Minister Assisting the Prime Minister for the Public Service, the Hon Peter Reith MP, today advised public sector unions of the Government's framework for reducing the numbers of Commonwealth public servants. The Government's approach was settled earlier this week.
Mr Reith said the Federal Government had not set any numbers for the downsizing but staffing reductions would be addressed by public service managers in the context of their available resources and within a framework laid down by Cabinet.
"Our priority is to tackle Mr Beasley's $8 billion black hole and to address the former Government's financial mismanagement," Mr Reith said.
"A balanced budget is imperative if Australia is to improve its national savings, ease interest rate pressures and create jobs.
"The Government has a very clear mandate to deliver better economic management and it intends to deliver on this promise given during the election."
Mr Reith said the Government would ensure the required public service downsizing is managed in a professional and orderly way and takes place in the terms of the current APS GeneraI Employment Conditions Award and the APS Enterprise Agreement negotiated between the public sector unions and the former Government.
"Though the current arrangements provide for involuntary redundancies, the Government has instructed Departmental managers that much of what is required can occur through natural attrition, voluntary redundancy, lower levels of recruitment and reductions in temporary staff.
"The process will be in the hands of managers to ensure the highest level of flexibility and will emphasise redeployment of officers within the service wherever possible."
Mr Reith said public sector unions had jumped the gun on paid rates awards by announcing (3 April 1996) a national campaign against the Government even before they had responded to requests for suggestions on how to protect public sector workers in the transition to minimum rates awards.
"Today the unions have effectively announced a second campaign, this time on the issue of the I997 Budget, again prior to seeing through opportunities for further consultation with the Government."
Mr Reith said despite the unions unleashing this political strategy he had this afternoon instigated further consultation with CPSU Joint National President Wendy Caird, scheduled for next Thursday, 18 April 1996, to hear her concerns and explain the Government's approach.
Mr Reith also said that further claims today by CPSU that the current Budget represented a breach of the Government's election commitments was wrong.
"During the campaign the Coalition repeatedly sought confirmation of the budget bottom but the Labor Government refused to open the books and only claimed, as Mr Beas1ey did that 'we're in surplus, and our projections are for surpluses in the future.'" (The Age, 1 February 1996).
"The CoaIition's commitments on APS numbers were calculated upon the expenditure restraint outlined in the Coalition's policy. The expected impact of that self-contained package on jobs in the APS was able to be managed within the annual rates of natural attrition across the service.
"This estimate was a fair statement in respect of the package and the Government has not broken any promises."
Mr Reith said that as the Budget position was worse than Labor let on, the unions' campaign should be targeting Mr Beasley's financial incompetence.
Mr Reith also said efforts by the CPSU to put a timetable on the Government's response to changes in the public sector were ill-founded.
"The Government has not set any targets for reducing public service numbers and these would only be addressed as part of the budget cycle over the coming months.
"The Government has also clearly indicated it will retain its commitment to the current APS agreement and award provisions regarding excess officers.
"On this basis. there is every reason for the CPSU to also stick to the same agreements and to consult with the Government so the views of its members are properly represented."
For further information, contact Nick Hordern: 04l9-423 756
