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Efficiency dividend bumping up to 4%

By johnboy - 31 August 2012 24

The Financial Review has the very bad news for the public service here in Canberra that a newer and bigger efficiency dividend is going to be imposed:

Cabinet ministers have been told the expenditure review committee of cabinet will impose a further “efficiency dividend” on the federal bureaucracy, in addition to the on-going 1.5 per cent dividend and an additional, one-off 2.5 percentage-point boost dividend imposed last November. That took the dividend – in effect, enforced spending cuts – in 2012-13 to 4 per cent.

However, the government is apparently looking for another name for the across-the-board cut to the federal bureaucracy, which is already enduring a reduction in staffing numbers by 4200 over a two-year period.

Individual departments are being told how many positions they will have to shed as part of the savings measure. It comes as the mid-year review of the budget once again is turned into a mini-budget to rein in costs to offset spending blowouts and revenue shortfalls to keep the surplus forecast this financial year on track.

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24 Responses to
Efficiency dividend bumping up to 4%
devus 12:34 pm 31 Aug 12

Mysteryman said :

They have to get their magical surplus somehow, and it clearly wasn’t coming from sensible spending.

What I don’t understand is why they don’t just diddle the numbers… even more, that is. The numbers are already meaningless rubbish, no-one will care if they fudge their assumptions a touch more, so that the budget stays a few million over. The error bars might be a few hundred million, but that’s okay – no-one even understands them, let alone gives a toss – especially journos.

colourful sydney rac 12:13 pm 31 Aug 12

artuoui said :

colourful sydney racing identity said :

great choice, a party that tells you it’s your friend and knifes you in the back versus one which will looks you in the eye and tells you, before it knifes you in the stomach…

its an even nicer choice when you know that your union is using member’s union dues to pay affiliation fees to the party that knifes you in the back.

Agreed, I find it appalling that my union donates money to my employer.

dtc 11:58 am 31 Aug 12

mossrocket said :

It’s a shame that the only efficiencies either side of politics (and the rabble of old people whom are the Senior Executive SErvice) understand is through the reduction of staff…

There are several billion dollars in funding/programs that could be cut without anyone actually noticing, beyond a very small number of grant recipients

That said, 50%+ of the budget is in health and Centrelink payments, which you are generally stuck with. So the ‘discretionary’ part of expenditure (that you can cut) is reduced

Mysteryman 11:19 am 31 Aug 12

I thought it was already at 4%….?

They have to get their magical surplus somehow, and it clearly wasn’t coming from sensible spending.

Thumper 11:18 am 31 Aug 12

colourful sydney racing identity said :

great choice, a party that tells you it’s your friend and knifes you in the back versus one which will looks you in the eye and tells you, before it knifes you in the stomach…

And that is about it.

Madam Cholet 11:11 am 31 Aug 12

Andrew Leigh was on 666 this morning swearing blind that he knew nothing about it and that it is scaremongering. Didn’t seem to have much to say when a couple of PS callers suggested that they have been working on finding more dividends than first asked for.

bd84 11:08 am 31 Aug 12

Ah the hypocrisy of Julia Gillard, only a few days ago she was going after Tony Abbott for saying he will cut jobs, when she was already planning the same thing through the disguise of efficiency dividends.

mossrocket 11:04 am 31 Aug 12

It’s a shame that the only efficiencies either side of politics (and the rabble of old people whom are the Senior Executive SErvice) understand is through the reduction of staff…

I can’t understand why we aren’t looking at ways to ‘work smarter’ – like a standardized, open-source, IT environment (one Content Managament System, one Client Relationship Management system etc)

The APS is no larger than a single big US company – yet we treat ourselves like giant stupid silos…

artuoui 11:04 am 31 Aug 12

colourful sydney racing identity said :

great choice, a party that tells you it’s your friend and knifes you in the back versus one which will looks you in the eye and tells you, before it knifes you in the stomach…

its an even nicer choice when you know that your union is using member’s union dues to pay affiliation fees to the party that knifes you in the back.

greyswandir 10:57 am 31 Aug 12

To be completely honest I do think the APS is inefficient.

So much time and money seems to be wasted on ‘restructuring’ and ‘streamlining’ which then gets reversed or changed again twelve months down the track. Not to mention the workload I personally have experienced (obviously can only speak to my own experience) is minimal compared to my experience in a small private enterprise.

Maybe I’m the exception rather than the rule, I don’t know. But if the beast is to be made efficient I don’t think making swathes of people redundant is the way to do it.

p1 10:57 am 31 Aug 12

Excellent. This department will become another couple of percent less efficient.

PigDog 10:53 am 31 Aug 12

colourful sydney racing identity said :

great choice, a party that tells you it’s your friend and knifes you in the back versus one which will looks you in the eye and tells you, before it knifes you in the stomach…

There is a handy guide here to tell the two parties apart:
http://towerofturtles.com/25_Welcome_to_the_Public_Service_Part_3.html

davo101 10:53 am 31 Aug 12

I just wish they’d drop the newspeak. The “efficiency dividend” has nothing at all to do with efficiency, perhaps they could just be more honest and call it a budget cut.

colourful sydney rac 10:37 am 31 Aug 12

great choice, a party that tells you it’s your friend and knifes you in the back versus one which will looks you in the eye and tells you, before it knifes you in the stomach…

johnboy 10:24 am 31 Aug 12

Senator Humphries is trying to convince us that the Liberals’ overt hatred of the public service is morally superior to Labor’s lip service.

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