Tough Budget test

The 13 May Budget was the toughest in a decade and was seen by many as the first real test of the Rudd Government's economic credentials.

With inflation and interest rates on the move and continuing global instability, there is growing pressure from commentators and business groups for large scale cuts to government spending and public services.

At the same time we are looking to the Rudd Government to use its first Budget to deliver the compassion and decency the Australian community voted for at the election.

We know the Government's 'razor gang' will be imposing a one-off 2% extra efficiency dividend on top of the 1.25% dividend already in place. These cuts were announced pre-election and are already locked in.

But this has not stopped us taking up the case for a new approach to PS finance.

In our view, blunt arbitrary measures such as the 2% extra dividend do nothing to improve public sector productivity and damage the capacity of public service agencies to deliver services effectively.

Arbitrary cuts inevitably lead to 'false economies' which cost taxpayers more in the long run.

Put simply, if you cut staff in frontline offices you will effect the quality and timeliness of the service clients receive.

Is it really a saving to reduce the quantity, quality and scope of ABS surveys that are used by businesses and Governments to plan future developments? A reduction in ATO staffing undermines efforts to minimize tax avoidance and maximize revenue collection.

Our ability to respond to the challenges of climate change will not be enhanced by cutting programs in CSIRO or the Bureau of Meteorology.

At a time when the public service is struggling to attract and retain experienced and talented employees, short term measures won't help.

Several months ago the CPSU leadership identified a number of key objectives to protect members' interests.

Top of the list was the need to avoid involuntary redundancies and ensure there was an effective whole-of-government redeployment process.

The good news is that following intensive lobbying from the CPSU, the Government agreed to establish the Career Transition and Support Centre (CTSC), a specialist support unit to manage and coordinate redeployment for APS staff affected by funding cuts.

When Labor Senator John Faulkner launched the CTSC at CPSU Governing Council in March he said: “We want to ensure that excess staff are provided with the opportunity to remain in the APS... and that the requirement for the compulsory retrenchment of staff is minimised. The Rudd Government is determined that the public service retains corporate knowledge, expertise and skilled workers and our approach will ensure the retention and reallocation of staff with skills essential for implementing the government’s new policy agenda.”

The real job now is to keep the Government to its word and ensure departments use the redeployment process to avoid compulsory redundancies.

In meeting the many challenges the Budget presents, the CPSU leadership team also identified the need ensure the 'one-off' extra dividend does not become a standard feature of future budgets, and that workloads are adjusted when staffing levels change.

The CPSU has prepared materials and information to support individuals who may be affected by Budget changes. As a union member you will be able to access information and advice about your rights and entitlements under your agreement. (See Redeployment and redundancy FAQ)

Over the next few month the CPSU will be working hard to ensure the rights of individuals are respected through out any change process. We will continue to argue against arbitrary cuts and in favor of a public sector that can deliver quality services and quality jobs.

Thanks for your ongoing membership and support. Please feel free to post a comment below and visit our campaign site.

More information: Visit our Public Service Pressure campaign page here.