Victoria’s bulging public sector costs taxpayers extra $1.5b

A BALLOONING public service is costing Victorian taxpayers an extra $1.5 billion a year, with a hiring spree adding an extra 1250 full-time-equivalent jobs in 2016-17.

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VICTORIA’S bulging public sector has packed on hundreds of jobs and cost taxpayers an extra $1.5 billion in a year.

A hiring spree across four key government departments added an extra 1250 full-time-equivalent jobs last financial year.

Public sector staff across the board boomed 7.7 per cent, driving employee expenses from $20 billion to $21.5 billion.

A document dump of almost 100 annual reports on Thursday revealed the Department of Premier and Cabinet added more than 200 full-time-equivalent jobs during 2016-17.

Its employee expenses ballooned by $28 million.

The Premier’s Department added hundreds of new job last financial year. Picture: David Geraghty

The expenses increased by $33.8 million at the Department of Environment, Land, Water and Planning and $22.5 million at the Department of Economic Development, Jobs, Transport and Resources.

The Department of Education and Training, which pays more than 59,000 teachers, saw its employee expenses jump $289.8 million.

The Institute of Public Affairs’ Aaron Lane said the expansion of the public service was a “worrying trend”.

“I don’t think Victorians would see the benefit in growing an already bloated bureaucracy,” he said.

“It plays to the stereotype that the public service is inefficient, bloated and constrained by policies and procedures.

“And the cost is worn by the Victorian taxpayer.”

Victoria’s bulging public sector has packed on hundreds of jobs.

Despite the spending spree, the government on Thursday trumpeted its Budget surplus that included $2.7 billion last financial year.

Debt also dropped to 4 per cent of gross state product.

Treasurer Tim Pallas defended the blowout and said public service employee costs had come in about $560 million less than forecast.

“This is a government that invests in the things that matter to Victorians — that means more nurses, more teachers, more firefighters, and more police,” Mr Pallas said.

“You also cannot provide sharp-end services unless you provide the back office support.

“Why is this state leading the nation in terms of economic growth? Because we are coming up with policy ideas that everybody else is stealing.

“That comes from the work of highly-motivated, capable and qualified public servants.”

Treasurer Tim Pallas defended the jump in public sector jobs. Picture: Jay Town

Staff numbers also increased at WorkSafe and the Independent Broad-based Anti-corruption Commission, with the watchdog’s annual report flagging the recruitment of more investigators this financial year.

Employee expenses at the authorities increased by $21 million and $3 million respectively.

Opposition Leader Matthew Guy hit out at the bulging public service.

“Daniel Andrews is spending tens of millions of dollars on more staff and yet crime is surging, traffic is gridlocked, electricity costs are out of control and Victoria has Australia’s highest unemployment rate,” he said.

“When you spend taxpayers money you need to make sure it’s getting results for Victorians not just hiring staff for the sake of it.”

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@moniquehore