Sweeping public service job cuts on way

SWEEPING job cuts across the public service are on the way as the Gunner Government struggles to deal with a ballooning deficit and tens of millions of dollars in recently announced spending commitments, the NT News can reveal

SWEEPING job cuts across the public service are on the way as the Gunner Government struggles to deal with a ballooning deficit and tens of millions of dollars in recently announced spending commitments, the NT News can reveal.

Several sources have confirmed the Labor Government has flagged their plan with department heads, but exactly how many jobs the public service will lose is unclear.

Treasurer Nicole Manison confirmed late yesterday that the Government has “requested all Government agencies look at what savings they can make and take appropriate measures to ensure they are operating efficiently, cutting waste, duplication, inefficiencies and ineffective programs”.

It’s understood that will result in significant job cuts.

“Territorians expect Government to manage the budget responsibly and ensure it suits the economic climate,” Ms Manison said in a statement. “We need this (agency savings) done so we can focus investment on frontline services like police, teachers and infrastructure so we support more jobs in the Territory. This is what good governments do.”

The Northern Territory Public Service enterprise agreement is set to expire this year, with contract talks expected to start in March.

Exactly how the Government would terminate positions is unknown but government figures show that 27 per cent of public service employees are on fixed term contracts. Ms Manison indicated expensive executive contracts could be reduced.

“We will also be looking at the number of executive contracts as part of the budget.”

The bloated NT public service has been targeted for cuts and “efficiencies” by Governments of all stripes for years, but overall spending has increased year over year. Since 1983, full time public service employees have jumped from 14,000 to nearly 21,000.

Wages and superannuation of public employees made up more than $2.6 billion of the Territory’s $6.46 billion Budget last year. This year’s deficit is now expected to be $875 million, with a projected debt of $3.1 billion by 2019-20.

“When you look at the economics, you really have to (make cuts to the public service),” a source with knowledge of the plan told the NT News.

Chief Minister Michael Gunner has announced tens of millions in new spending in recent months on everything from economic stimulus initiatives to youth justice measures.

Meanwhile, a troubled economic outlook is taking its toll on the Government’s coffers. Revenue is estimated to take a $1 billion hit over the next three years.

Originally published as Sweeping public service job cuts on way