LABOR TO MAKE $600 MILLION IN SAVINGS

LABOR TO MAKE $600 MILLION IN SAVINGS

Posted on 05. Nov, 2010 in Election Media Release, News

A future Brumby Labor Government will cap the number of deskbound public service staff and deploy more staff to frontline services as part of a new package to drive efficiency and effectiveness of government expenditure.

Finance Minister Tim Holding said the changes to public service deployment were part of a $600 million savings package over the next four years which will make the delivery of government services more efficient.

“Labor’s disciplined financial management is keeping our economy heading in the right direction and ensuring taxpayers receive the best value for money,” Mr Holding said.

“Last financial year, Victoria created more jobs than any other state – and a future Brumby Labor Government is determined to keep the jobs coming to Victoria and maintain our AAA credit rating.

“We have implemented a disciplined wages policy to ensure costs are contained, but unlike the Opposition we have not done this through sacking staff such as teachers, nurses and police.

“A key part of our disciplined financial management has been achieving sensible savings and efficiencies. This has come from areas such as cutting costs on car fleets, consultancies and Whole of Government purchasing on things like fuel, printing and electricity.

“At the last election, Labor promised to save $447 million by the end of 2010/11 and we are on track to exceed this target plus we have achieved further savings measures totalling more than a $1 billion.”

“The latest round of savings measures that we are announcing today provides money for spending on key Labor priorities such as building schools, hospitals and police stations and buying new trains and trams.”

The package will save $600 million over four year across the Victorian Government including:

  • $200 million saving by continuing the highly successful rollout of the compulsory State Purchasing Contracts across government and agencies and leveraging Government’s buying power to achieve greater value for money for taxpayers;
  • $131 million saving by capping the number of head office staff across government and ensuring growth in staff only occurs in priority areas and frontline services;
  • $100 million saving by slashing the use of long-term contractors, particularly in IT services;
  • $86 million saving from the Efficient Technology Services project, which is currently being rolled out to consolidate IT services across government;
  • $16 million from the consolidation of ancillary services across government including carpools, libraries, and facilities management;
  • $34 million saving by continuing the Government’s shared services agenda; and
  • $33 million saving by reducing office floor space used across government to bring it into line with best international practice.

Mr Holding said Ted Baillieu was hiding a massive funding black hole, which is why he is refusing to have his policies costed by the independent Victorian Treasury.

“The Opposition’s only plan to make savings is to reduce advertising expenditure, even though they have plans for 25 new advertising campaigns, and sacking half the workers who provide information to the public which would leave Victorians at risk during times of major emergencies,” he said.

“Just like Tony Abbott, Ted Baillieu has refused to cost his policies through the independent Victorian Treasury. This means Victorians cannot find out the true cost of his election promises until after election day.”

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