Page 885 - Week 03 - Wednesday, 27 February 2013
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Let us look at these points. The first and last points—driving efficiencies in the use of consultants, advertising, travel, printing and the ACT public service—are essentially the same thing. It is taking departmental resources away and making directorates do the same with less—just like the efficiency dividend. But this is not new. The last four budgets have included such measures: $88 million in 2012-13, $88.8 million in 2011-12, $73 million in 2010-11 and $55 million in 2009-10.
Whilst we support increased efficiencies where possible, efficiency dividends and departmental savings are only sustainable for so long. In fact, Mr Barr stated in PAC on 21 February that that point would be reached very soon. I quote Mr Seselja’s question:
If that is what you are cutting every year, how long before that starts to impact on the capacity of some of those agencies? Or is it your view that in fact there will still be a lot of fat when it comes to some of that extra spending?
Mr Barr replied:
I think we would be reaching a point fairly soon where you have exhausted the available savings in those areas of any significance … There are always opportunities, but I would not be suggesting that those savings are in the millions.
So where are those savings coming from? Will there be more staff savings, I ask you, Mr Treasurer? In the last two budgets there has been a total of $135.7 million taken out of staff expenses. That is 390 positions. Are you contemplating staff cuts?
The other two points on the list of actions are to delay some projects and review the capital program. It is difficult to find an infrastructure project that is not delayed. I suppose delaying it further might just be the pretence as a cover for the fact that as a project gets delayed the government will say that it was just part of the financial plan to get the budget back into surplus. Maybe that will be the smokescreen. But what projects are they? Which projects are going to be delayed based on—
Mr Barr: They were listed on the budget update. You can’t read?
MR HANSON: Let us see the update of that, because what we are seeing time after time is projects delayed for any other reason than economic profiling. What about infrastructure works that are needed right now, like the rectification of Taylor Primary School and a lot of the capital infrastructure on our roads? Are these projects simply going to be delayed because of the inability of this government to control its spending?
The budget is of serious concern to the opposition and the ACT community. While the government continues to state that revenues are softening, it is not acting as if this was the case. The Treasurer needs to be honest with the people of Canberra about the savings he has outlined and the savings that he is perhaps keeping hidden. I commend Mr Smyth’s motion to the Assembly.
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