Ms PURICK - 2012-05-01
You announced your department will save $20.6m each year in discretionary costs, particularly in the area of government advertising. If you can save that much on advertising, why will you not stop government advertising before the election in August this year?
Ms Lawrie: Did you say which department?
Madam SPEAKER: I am sorry, which department was it for?
Ms PURICK: To the Treasurer.
Madam SPEAKER: Yes, but which department?
Ms PURICK: All departments, Madam Speaker.
ANSWER
Madam Speaker, I am happy to answer in the broadest possible way because the question was broad. It did not go to the agency …
Members interjecting.
Madam SPEAKER: Order! Order!
Ms LAWRIE: Calm down, member for Fong Lim. I know you are excited.
Mr Tollner: Oh, you drop kick.
Ms SCRYMGOUR: A point of order, Madam Speaker! I ask ...
Madam SPEAKER: Member for Fong Lim, I ask you to withdraw that, please.
Mr TOLLNER: I withdraw.
Madam SPEAKER: Thank you. Treasurer.
Ms LAWRIE: What I assume the member for Goyder is talking about is the efficiency dividend measures in place across government budgets. We make no apology for that. That has achieved cumulative savings of $300m since we put those ramped up measures in place in Budget 2010-11. We also put in place a staffing cap. We have increased the efficiency dividend - I mentioned that in the budget speech - across the agencies to 3%. That will create cumulative savings of about $150m ongoing; we have been upfront about that.
I advised media this morning the way the efficiency dividend applies is most agencies apply it to their travel budgets, their consultancies, using IT for meetings rather than getting on a plane, and really focusing on their corporate services areas, if you like, the backroom areas, not the frontline services of agency budgets. They have met, year-on-year, our requirements for efficiency dividends.
That being said, efficiency dividends do not apply across the board evenly. We quarantine and cut by half the efficiency dividend to those core service areas of health, education and police, and the Corrections part of the Department of Justice, because we recognise they have real staffing ratio issues in service delivery. There is a ratio of nurses to patients, for example; a ratio of teachers to students; equally, a ratio of prisoner officers within the prison system.
Broadly speaking, there is a 3% efficiency dividend in place. Broadly speaking, each agency determines how they meet that efficiency dividend within the agency in consultation with their minister.
As I said, those key service delivery agencies of health, education, police and corrections are quarantined from the full 3% and attract an efficiency dividend of 1.5%. It is about smarter, better government maintaining and improving core service delivery across the Territory, while also being prudent and tightening the belt in tough economic conditions with a dramatic reduction in GST revenue. An amount of $770m has been lost in GST revenue since the global financial crisis hit. We are predicting another $480m loss in GST revenue across the forward estimates. Of course, people expect government to tighten its belt. The most effective and efficient way to do that is through efficiency dividends where departments can generally look at their spending behaviour and patterns. It is largely on travel and consultancies and we make no apology for that.
Ms Lawrie: Did you say which department?
Madam SPEAKER: I am sorry, which department was it for?
Ms PURICK: To the Treasurer.
Madam SPEAKER: Yes, but which department?
Ms PURICK: All departments, Madam Speaker.
ANSWER
Madam Speaker, I am happy to answer in the broadest possible way because the question was broad. It did not go to the agency …
Members interjecting.
Madam SPEAKER: Order! Order!
Ms LAWRIE: Calm down, member for Fong Lim. I know you are excited.
Mr Tollner: Oh, you drop kick.
Ms SCRYMGOUR: A point of order, Madam Speaker! I ask ...
Madam SPEAKER: Member for Fong Lim, I ask you to withdraw that, please.
Mr TOLLNER: I withdraw.
Madam SPEAKER: Thank you. Treasurer.
Ms LAWRIE: What I assume the member for Goyder is talking about is the efficiency dividend measures in place across government budgets. We make no apology for that. That has achieved cumulative savings of $300m since we put those ramped up measures in place in Budget 2010-11. We also put in place a staffing cap. We have increased the efficiency dividend - I mentioned that in the budget speech - across the agencies to 3%. That will create cumulative savings of about $150m ongoing; we have been upfront about that.
I advised media this morning the way the efficiency dividend applies is most agencies apply it to their travel budgets, their consultancies, using IT for meetings rather than getting on a plane, and really focusing on their corporate services areas, if you like, the backroom areas, not the frontline services of agency budgets. They have met, year-on-year, our requirements for efficiency dividends.
That being said, efficiency dividends do not apply across the board evenly. We quarantine and cut by half the efficiency dividend to those core service areas of health, education and police, and the Corrections part of the Department of Justice, because we recognise they have real staffing ratio issues in service delivery. There is a ratio of nurses to patients, for example; a ratio of teachers to students; equally, a ratio of prisoner officers within the prison system.
Broadly speaking, there is a 3% efficiency dividend in place. Broadly speaking, each agency determines how they meet that efficiency dividend within the agency in consultation with their minister.
As I said, those key service delivery agencies of health, education, police and corrections are quarantined from the full 3% and attract an efficiency dividend of 1.5%. It is about smarter, better government maintaining and improving core service delivery across the Territory, while also being prudent and tightening the belt in tough economic conditions with a dramatic reduction in GST revenue. An amount of $770m has been lost in GST revenue since the global financial crisis hit. We are predicting another $480m loss in GST revenue across the forward estimates. Of course, people expect government to tighten its belt. The most effective and efficient way to do that is through efficiency dividends where departments can generally look at their spending behaviour and patterns. It is largely on travel and consultancies and we make no apology for that.
Last updated: 09 Aug 2016