The cuts begin

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From the AFR:

…Senator Wong said Labor had taken an “explicit decision” to target savings not job cuts and to maintain frontline services. As a result, she announced the “next phase” of government efficiencies would deliver $550 million in savings.

“The juxtaposition could not be clearer with the recently elected Government of Queensland,” Senator Wong told a conference of the Australian Institute of Company Directors in Canberra.

…Savings include:

  • Nearly $30 million per year from across-the-board reductions in air travel spending, including restrictions on short business class flights;
  • Over $60 million in 2012-13 from reducing the public service’s reliance on external consultants and contractors;
  • $2 million per year from using only online recruitment advertising unless special conditions exist;
  • About $6 million per year saved by publishing documents online only, reducing printing costs by approximately 5 per cent.

Well, the jobs will disappear somewhere else then. That is, in travel, at printers, in consultancies and in media. Is this a better approach than cutting public servants?

Much more of this to come.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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