Thousands of Victorian public services jobs to be axed
Thousands of Victorian public service jobs are set to be slashed as the Allan Labor government tries to cut back on billions of dollars of spending in the sector.
Thousands of Victorian public service jobs are set to be slashed as the Allan Labor government tries to cut back on billions of dollars of spending in the sector.
Victorian Premier Jacinta Allan and Treasurer Jaclyn Symes announced on Thursday the government had commissioned an independent review into the state’s public service, with a focus on “reducing waste, inefficiency and duplication”.
Ms Symes said she expected 2000 to 3000 public service jobs – comprising 5 to 6 per cent of the workforce – to be cut as a result of the review.
Ms Symes admitted that Victoria’s budget – which is on track to reach a net debt of $187.3bn by mid-2028 – needed a “refresh” to respond to the priorities of the Victorian community and said she expected the outcome of the review to provide savings of “several billion dollars”.
Helen Silver AO, a former Department of Premier and Cabinet secretary, will lead the review and deliver her final report by June 30.
In the meantime, Ms Silver will provide interim recommendations to the government which will inform the Victorian budget, due to be delivered on May 20.
According to the terms of the review, Ms Silver will provide recommendations on reducing the Victorian public service back to its “pre-pandemic share of employment”, including an “examination of the appropriate levels of executives”, as well as increasing operational efficiencies within departments and programs.
The review will also identify overlaps, inefficiencies, functions and programs that can be streamlined or eliminated, with a focus on “entity consolidation”.
Ms Symes said while frontline services would be excluded from the review’s scope, the government would be making “difficult decisions” about other public sector areas.
“These will be recommendations that government will give due consideration to, with a view to ensuring … every cent of taxpayer dollar is going to the priorities and needs of the Victorian community,” she said.
Ms Symes acknowledged that previous plans to reduce Victorian public service numbers, including under the state’s former treasurer Tim Pallas, had been unsuccessful.
“Previous attempts haven’t worked,” she said. “I’m the new Treasurer of the state. I am determined that this process will produce results for the benefit of Victorians.”
Community and Public Sector Union spokesperson Leanne Shingles said the public service had already been “cut to the bone” and encouraged the government to instead look at what it was spending on external consultants.
“The Victorian public service has returned $5bn to the state’s coffers in the last three budgets, that’s a lot of jobs,” Ms Shingles said.
“As our population grows, the demand for government services grows and if you cut jobs, who is going to be left to deliver the services at the standard and level that people expect?”
Ms Shingles said the union was concerned the review’s outcome had been pre-empted.
“We have no issue with a genuine review. However, in the same breath that the review was announced, the Treasurer anticipated the outcome,” she said.
Opposition Treasury spokesman James Newbury accused the government of using the review “to try and shield from the public the truth of the budget overspend”.
“This review is a total hoax,” he said. “The state Labor government has exploded in their spending on the public service, going from $18bn to $36bn over the past 10-year period.”
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