Premier outlines historic blueprint for public sector restructuring

3/5/01
The State Government has unveiled plans for the most comprehensive and far-reaching reform of the Western Australian public sector ever undertaken.
Premier Geoff Gallop unveiled the blueprint for change in State Parliament this morning, describing the historic reform agenda as revolutionary in its size and scope.
Dr Gallop said State Cabinet had endorsed recommendations from the Machinery of Government Taskforce that would see the number of departments reduced from 46 to 23 and the number of senior executive positions cut by at least 60.
"While the final report of the taskforce will not be considered by Cabinet until June, we are determined to commence the process of change immediately," he said.
"The reforms outlined today are essentially the building blocks upon which the machinery of government will be restructured to create less bureaucracy and red tape and better service delivery.
"We have already delivered on our promise to reduce the size of Cabinet and we are now working to deliver on our promise to reduce the number of departments and senior executives.
"This is not an attack on the public sector. It is an attack on waste, duplication and inefficiency.
"The aim is a better public sector delivering better services to the people."
Dr Gallop said retirement packages would be offered to senior executives in compensation for the early termination of their contracts of employment. Payments would be funded from the 2000-01 Budget in order to generate savings in future years.
"Reducing the number of senior executives by 60 will generate annual savings of around $6 million which can then be redirected into the delivery of core services in vital areas like health, education and police," he said.
Key features of the changes include the amalgamation of major economic departments to provide better policy and better services for industry, a clearer separation of the regulatory and service delivery functions of Government and a new emphasis on the regions and local government.
Major structural changes endorsed by Cabinet include:

• the creation of a new Department of Regional Development and Local Government by combining the roles of the current Department of Local Government with those regional functions currently undertaken by the Department of Commerce and Trade;

• a new Department of Housing and Works combining the functions of the Ministry of Housing, the Government Projects Office and parts of Contract and Management Services (CAMS);

• merging the Ministry of Fair Trading, DOPLAR, WorkCover WA and WorkSafe to create a new Department of Employment and Consumer Protection;

• merging the departments of Minerals and Energy and Resources Development to create a new Department of Minerals and Energy;

• amalgamating the Treasury and State Revenue departments into a new Department of Treasury and Finance;

• merging the non-regional functions of Commerce and Trade with parts of CAMS to create a new Department of Commerce and Trade;

• merging the Agriculture WA, Fisheries WA and the Forest Products Commission to create a new Department of Agriculture, Forests and Fisheries;

• combining the Department of Transport and the Ministry of Planning to create a new Department of Planning and Infrastructure;

• creating a new Department of Community Development incorporating the Department of Family and Children's Services, Youth, Seniors and Women's Interests;

• the creation of a new Chief Secretary portfolio with responsibility for a number of regulatory and control functions of government; and

• the creation of a new Government Enterprises portfolio with responsibility for Government trading enterprises such as the Water Corporation, Western Power, the TAB and the Lotteries Commission.

The Premier said the reduction in the number of departments to 23 would be achieved by merging some and reclassifying others, such as the WA Electoral Commission, more appropriately as offices.
A major restructuring of the bureaucracy to better service the needs of the people was long overdue.
"The previous Coalition Government privatised and downsized the public sector, but completely ignored the basic structural reforms that were desperately needed," Dr Gallop said.
"Interstate comparisons show that WA has by far the largest number of departments with 46. New South Wales has the next highest with 33, while Victoria has the lowest with eight.
"While major in its size and scope, the changes we are embarking upon are sensible, realistic and achievable.
"Most importantly, they will assist Government to provide better, more cost-effective services to the people of this State."
The Premier said further reforms would be announced as Cabinet approved them.
Media contact: Kieran Murphy 9222 9475