Page 2359 - Week 08 - Tuesday, 12 August 2014
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It is also the view of a range of other economic commentators on the government’s budget strategy and the view of the credit rating agencies. That, I think, is a very sound endorsement of the government’s budget strategy. I am very pleased to recommend this line item to the Assembly.
Proposed expenditure agreed to.
Commerce and Works Directorate—
Schedule 1, Part 1.6—$33,845,490 (capital injection), $271,799 (payments on behalf of Territory), totalling $34,117,289.
MR SMYTH (Brindabella) (5.39): There are a number of directorates that are, of course, terminating. The Commerce and Works Directorate and the Environment and Sustainable Development Directorate have been rolled into other areas, but we have to validate the funding that was spent between 1 July and 6 July, which is the purpose of this and the other line.
I will take this opportunity to ask the Treasurer a question, because he has not come back to the Assembly on it yet. I asked him a question during question time today about contractors in Shared Services and whether or not they were being asked to take pay cuts. I understand that since that question there has been a flurry of activity in emails around Shared Services. Perhaps the Treasurer might take the opportunity to tell us whether or not the cut in wages has been proposed and whether or not the payroll tax changes will be passed on to contractors who continue to work in Shared Services.
MR BARR (Molonglo—Deputy Chief Minister, Treasurer, Minister for Economic Development, Minister for Housing and Minister for Tourism and Events) (5.40): Yes, I can advise the Assembly on that matter. Shared Services ICT contractors are engaged for a fixed term at a fixed rate. The terms and conditions of new contracts are subject to market forces at the time. Each time a contract is renewed, the financial delegate has a responsibility to ensure that the rates and conditions are consistent with market forces at that time. It is worth noting that contractors are paid much higher rates than ACT public service staff who they work alongside, to compensate for the shorter employment terms and the higher skill levels associated with some of the short and medium-term projects that contractors are required to undertake.
The market for ICT contractors will vary from time to time. I am advised that there is no blanket approach to this matter from Shared Services, that there are some contracts and some skill sets that are able to be secured for a lower rate, as you would expect the agency to do. They should not be paying over the odds for ICT services. There are other rates that have remained entirely unchanged as a result of there being no change in the marketplace.
I think I can confidently rule out the allegation that was raised during question time that there is some blanket approach to the cutting of contractor rates or that this is in some way related to payroll tax changes. I think that neither assertion has been proven to be correct. The advice I have is that there are a number of contracts that are renewed from time to time and that the outcomes of those contract renewals have
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