Treasurer says he has not yet begun work on $450 million in public sector spending cuts

Treasurer Peter Gutwein says he has not started talks on $450 million worth of Tasmanian public sector spending cuts.

PLANS to cut hundreds of millions of dollars from the budgets of Tasmanian public sector agencies are not yet underway, Treasurer Peter Gutwein says.

During budget estimates committee hearings this morning, Mr Gutwein said he had not started talks on the $450 million worth of spending cuts — something he has described as an “efficiency dividend”.

“I haven’t engaged with any agency as yet,” he said.

Treasurer Peter Gutwein speaking during estimates hearings at Parliament House. Picture: LUKE BOWDEN

Mr Gutwein said the savings would come from reductions in spending on consultants, travel and transport, advertising and promotion as well as staffing reductions via targeted vacancy control and natural attrition.

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Public sector unions are concerned that the cuts will mean job losses, although the government insists frontline services will be spared.

Greens leader Cassy O’Connor asked Mr Gutwein how the government would achieve $158 million in savings from the health budget.

Greens Leader Cassy O'Connor listening during estimates hearings at Parliament House. Picture: LUKE BOWDEN

“You’re not listening to a word I’ve said. That suits your political purposes and I understand that,” Mr Gutwein said.

“We will work through this sensibly, we will look at whole of government expenses … we will work through that process.

“I believe, and I think the Auditor-General did as well, that we can be more efficient in health.”

Ms O’Connor repeatedly ask Mr Gutwein why the tourism marketing budget was quarantined from cuts, but the budget for out-of-home care for children at risk was not.