Media release: Union welcomes MYEFO as job cuts avoided

The CPSU said the savings made in today’s MYEFO were a sensible response to an increasingly difficult economic environment and that the Federal Government was right to rule out major cuts to public sector jobs.

The union also welcomed the fact that the Government has not extended the Efficiency Dividend at its current level of 4% beyond the current financial year, and that it will drop down to 1.5 per cent in the 2013/14 financial year.

CPSU National Secretary Nadine Flood said: “We have been making our case to the Federal Government that there is no more fat to cut in the public service and it’s clear there is growing community concern about public sector cuts at all levels of government.”

“The MYEFO papers show clearly that there are significant non-job savings measures already underway in the public sector. These include a $700 million reduction a capital expenditure announced last year and a $550 million cut to spending on consultants, travel and other costs announced in September,” said Ms Flood

“In the past year almost 40,000 public sector jobs have been cut by Coalition State governments. The public has also recognised that the cuts in the public service have gone too far and they are sending that message loud and clear to politicians,” Ms Flood said.

A recent CPSU survey of more than 500 workplaces found 80% reported job cuts in their agencies, with a similar figure (81%) saying there had been no efficiency gains as a result.

The union also said the announcement of extra resources for the Australian Tax Office and Customs to drive greater compliance was a sign that the Government had listened and was maintaining budgets in important areas such as revenue collection.

For further comment or arrange an interview call Julian Lee on 0409 493 290.