House debates

Monday, 21 June 2010

Appropriation Bill (No. 1) 2010-2011

Consideration in Detail

6:19 pm

Photo of Anthony ByrneAnthony Byrne (Holt, Australian Labor Party, Parliamentary Secretary to the Prime Minister) Share this | Hansard source

I thank the member for Corangamite for his question. It is obviously a good question. I certainly share the member’s concerns about what the coalition’s two-year Public Service freeze would do to the government’s ability to deliver essential services and implement crucial policy such as maritime safety campaigns and other campaigns of similar importance. The member for Corangamite is correct to point out that we have displayed strict fiscal discipline and we are returning the budget to surplus three years earlier than predicted.

The Liberal Party talks tough about cutting government spending but the party’s blocking and opposition serve to make the deficit worse. Conversely, we have displayed the courage of our convictions and delivered a budget that the nation needs. All agencies within the Prime Minister and Cabinet portfolio were able to comply with savings measures with the exception of the Office of the Inspector-General of Intelligence and Security and the Office of the Official Secretary to the Governor-General. I am sure all members will agree with the importance of the work of the Office of the Inspector-General of Intelligence and Security and respect this decision.

Across the APS, staff numbers increase and decrease in particular APS agencies depending on priorities and changes to programs. For example, this year’s budget papers show a reduction in the number of Centrelink staff on account of the number of welfare recipients also declining. All APS agencies are expected to be managed in the most efficient and effective manner possible. Since 2007, the growth and the headcount figures for the APS show that the growth in public service numbers under the Rudd government has slowed substantially. In June 2007 there were 155,416 APS employees compared with 162,000 in June 2009. This represents a modest growth in the Australian Public Service of 4.2 per cent over two years. By way of contrast, between June 2004 and June 2007 under the Howard government, the number of APS employees grew from 131,473 to 155,416—a growth of over 18 per cent.

We now have a scenario that will take us from one absurdity to another. As the member for Corangamite correctly identifies, the coalition’s proposed public service freeze will significantly undermine the Public Service capacity to deliver essential services. Graham Peachy, the head of the Australian Maritime Safety Authority, said that the plan:

… would severely curtail our ability to deliver national safety programs and to deliver an effective search and rescue effort.

This is something that concerns me. But he is not alone in his concerns. I also note that Alan Thompson, the head of the Department of Parliamentary Services, stated:

Services could be affected across parliament including in security, research, building maintenance as well as affecting the Parliamentary Library and parliamentary guides.

As the member for Corangamite has said, it will also result in a reduction of 50 staff from the Auditor-General’s office, affecting vital services.

My colleague Nick Sherry, the Assistant Treasurer, has also pointed out that the reduction in staff in the Australian Taxation Office would mean a loss of $2.1 billion in tax receipts that it would otherwise collect. I believe that the policy being put forward by the opposition is short-sighted and it is irresponsible. On the other hand, we have delivered the budget the nation needs and a budget that will return the nation to a surplus a full three years earlier than expected. We have applied strict fiscal discipline in all of the decisions we have made and the budget statements support this fully.

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