Record increase in public sector fat cat numbers in 2022

Labor pledged to cut the number of senior executives by 15 per cent – but they increased again since that promise was made.

Labor’s promise to save more than $600 million by cutting the number of public sector fat cats has been torn to shreds after a new government report revealed the number of public sector “senior executives” grew by more than 10 per cent last year.

In the last full-year of the Coalition government, almost 380 more senior executives were added to the public service – the largest increase since at least 2018.

The increase in top paid bureaucrats between 2021 to 2022 added an estimated wages bill of more than $100 million per year.

The Transport service accounted for most of the new senior public servants. In 2022, the Transport Service had more than 1,000 senior executives employed.

“The number of senior executives increased by 168 at Transport for NSW and 66 at Sydney Metro, compared to 2021,” the Public Service Commission Workplace Profile Report found.

The explosion in public sector fat cats under the former government came despite the Coalition pledging in 2019 to cut costs.

Treasurer Daniel Mookhey has promised more than $600 million in savings from fat cats. Picture: NCA NewsWire / Nikki Short

Last year’s increase in senior executives came while the number of Police Force and teaching service employees shrunk.

The number of “contingent workers” contracted by the public service grew by 27 per cent last year.

Election costings released by the Parliamentary Budget Office revealed that Labor’s plans to cut the number of “senior executives” by 15 per cent over four years would save almost $617 million.

Former premier Dominic Perrottet promised to cut senior executives before 2019 but failed.picture John Grainger

However – that promise was based on the 3,680 senior executives employed in 2021.

Cutting 15 per cent of 3680 would slash 552 senior executives from the bureaucracy.

By the end of 2022, 4,059 senior executives were employed in the public service.

Cutting 552 senior executives from 4,059 number would lead to a net reduction of just 173 positions since Labor had its policy costed.

Premier Chris Minns. Picture: NCA NewsWire / Simon Bullard

Treasurer Daniel Mookhey said the government remained committed to its election pledge of cutting the number of senior executives in the public sector ranks.

“Even as the former government was swelling its ranks with highly paid executives, it was deliberately suppressing the wages of essential workers, like teachers, police, prison officers, health care workers and others,” he said.

“As we promised, we are acting to bust the wages cap and imposing a well overdue freeze on senior executive pay, as well as pledging to reduce senior executive positions by 15 per cent.

“We are also leading by example with a two-year pay freeze for politicians,” he said.

Before the election, the Coalition moved to one-up Labor’s pledge by promising to cut senior executives by 20 per cent over the term.

Labor’s plan to cut spending relies on “natural attrition,” but the Coalition had intended to make certain positions redundant – which would have incurred about $145 million in termination payments.

Before the election, the Coalition moved to one-up Labor’s pledge by promising to cut senior executives by 20 per cent over the term.

Labor’s plan to cut spending relies on “natural attrition,” but the Coalition had intended to make certain positions redundant – which would have incurred about $145 million in termination payments.