Public sector reform leads to $78M savings

9/6/94

The Coalition Government's commitment to public sector reform had led to savings of $78 million to the taxpayer in this year's Budget, Premier and Treasurer Richard Court said today.

Mr Court said the Budget was the first to have been able to implement some of the recommendations of the McCarrey Report into public sector finances.

As a result, the public sector was demonstrably more efficient and effective.

"Taxpayers are the real winners out of the Government's public sector reform agenda," Mr Court said.

"This year's savings of $78 million represent more than a quarter of the entire Budget allocation for police.

"In a three-year period the savings increase to $147 million and there is potential for a total of up to $400 million to be saved.

"In addition, the number of full-time staffing positions in Govenment agencies will fall by nearly 1,100 in this financial year.

"This is just the beginning of the reform of the public sector and further major savings can be expected.

"It is our objective to provide better services to the public at the same time as producing a leaner bureaucracy."

Mr Court said some of the savings would be retained by the agencies and redirected to priority areas.

"One area, for example, which is a direct winner out of the public sector reform process is school maintenance, which was badly neglected by the previous Labor government," Mr Court said.

"In this year's Budget we have been able to boost spending on school maintenance by $6.5 million to $36 million.

"The Opposition and unions have been quick to criticise our public sector reform program, but what they do not seem to realise are the benefits that can flow from these changes - for example, a better deal for schoolchildren.

"This would not have been possible if the Government had not had the courage to tackle the task of reforming the way the public sector operates."

Mr Court said of equal importance to the financial savings was the change in attitude and approach amongst the public sector in Western Australia.

The Premier said another major initiative in the area of public sector reform had been its privatisation program.

The SGIO had been publicly floated and expressions of interest were sought for the sale of State Print and the partial privatisation of GoldCorp. Others being examined for privatisation included BankWest and Health Care Linen.

SECWA was being split into separate corporatised electricity and gas businesses and the next base load power station would be publicly owned but privately managed.

Competitive tendering and contracting will be used increasingly as a way of improving the efficiency and cost effectiveness of public services.

"This rationalisation of service delivery is allowing the Government to focus on its core responsibilities of providing essential State services while reducing State debt," Mr Court said.