Page 3353 - Week 12 - Tuesday, 17 September 1991
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The measures that we have adopted to reduce expenditure fall into three main categories. The first of these can be summarised as across-the-board reductions in administrative costs. I announced some of these measures in my July strategy statement. They include a decision not to index administrative expenditure for prospective cost increases. Spending on external consultants has been reduced by 25 per cent across the board. Expenditure on travel has been reduced by 20 per cent across the board - a doubling of the amount identified in my strategy statement. Vehicle costs have been reduced by 5 per cent, on top of the 10 per cent reduction in vehicles last year.
Progress has been made towards implementing the crucial decision to make targeted reductions in salary expenditure of $6m in 1991-92 and $10m in a full year. Agencies have been asked to reduce salary expenditure in administrative areas. This is clearly an area where we can achieve a leaner bureaucracy without affecting service delivery. In carrying out this major adjustment, we accept that there will need to be close and ongoing consultation with unions. These processes have commenced with the Trades and Labour Council and the unions involved. Relevant award provisions are being observed.
We have also taken a decision to consolidate many of our corporate services into a single corporate services bureau within the Department of Urban Services. This, together with other rationalisations in common services, will produce savings of $1.85m this year.
The second approach is to make more effective use of our existing corporate infrastructure. By making better use of government owned buildings, such as the North Building and the former Woden TAFE building, we will reduce office rental costs by $1m this year and $4m in a full year. The introduction of new telephone technology will cut our communication bills by over $1m a year. The installation of better energy management facilities will enable substantial savings to be realised in energy costs.
The cost of this new technology, and other similar initiatives, will be covered by a special pool of money put aside for restructuring purposes. From a large number of proposals submitted by departments, the Government has selected 20 restructuring initiatives, with a total cost of almost $10.5m over three years, aimed at producing substantial benefits to the budget in the medium term.
Each restructuring proposal has been examined to ensure that the investment of money now will produce at least a 25 per cent return on that money each year. Total ongoing savings of over $3.6m per year will be in place by 1994-95. In this context, the Government has decided to invest in a number of improvements in information technology, including
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