Budget crisis: More than 50 of NT’s highest paid public servants facing the sack

MORE than 50 of the Territory’s highest paid public servants face the sack as the Government seeks to rein in its spending

Sunbuild managing director Neil Sunners and Chief Minister Michael Gunner at Darwin High School on Monday. Picture: Keri Megelus

MORE than 50 of the Territory’s highest paid public servants face the sack as the Government seeks to rein in its spending.

Chief Minister Michael Gunner will on Tuesday announce a 10 per cent reduction in the number of public servants on executive contracts.

The announcement will be part of the Government’s response to former Western Australian Under Treasurer John Langoulant’s review into the Territory’s finances.

Fifty-two public servants — on executive contracts paying between $217,000 and $391,000 — face the chop as part of the review.

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There are 643 public servants employed on executive contracts, but school principals will be exempted from the cuts.

The Government is also expected to announce more than $10 billion in savings over the next 10 years as it tries to rein in net debt that had been predicted to hit $35 billion by 2029.

After announcing a pay freeze for politicians and senior public servants on Monday, Mr Gunner was keeping further details of the long awaited Budget repair plan close to his chest as he toured a construction site at Darwin High School.

“You will see the whole plan to fix the Northern Territory Government (on Tuesday) and obviously the public service is part of that plan,” he said.

But after questions from Sky News, the Government confirmed it was implementing the 10 per cent cut to executive contracts.

The 52 jobs will be phased out within 12 months with an annual saving to the Government of $13 million.

“We know many Territorians are doing it tough. That’s why it’s only fair that politicians and public service executives do their fair share of the heavy lifting to help fix the budget,” Mr Gunner said.

The growing size of the NT’s public service has been a major contributor to the NT’s Budget woes.

Between 2003 and 2016 the public service has grown by 41 per cent — to more than 21,000 people — despite the NT’s population only growing by about 21 per cent over the same period.

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A recent analysis by chartered accountant and from NT Council of Social Services president Barry Hansen found about 40 per cent of these public servants were in administrative and managerial roles.

He says the percentage of staff in such roles in a private business would be closer to 10 per cent.

But while some fat will be trimmed at the top, Mr Gunner on Monday ruled out any cuts to frontline workers including police, nurses, teachers and child protection workers.

The public service has continued to grow in the past financial year despite Treasurer Nicole Manison announcing a freeze on new hires.

Last month Ms Manison announced a cap on public service numbers after conceding the freeze had not delivered the results she had hoped for.