Gary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | Link to this | Hansard source

asked the Minister for Human Services, upon notice, on 18 September 2012:

In regard to the 2012-13 financial year:

(1) What is the net financial effect on the department's budget of: (a) the original 1.5 per cent (b) the additional 2.5 per cent efficiency dividend; and (c) other savings measures as introduced in the 2012-13 Budget papers.

(2) What measures or strategies are being considered to ensure continued operation within the budget and efficiency dividend targets of the department?

(3) What percentage of total expenditure is represented by staff costs?

(4) Is a net reduction in: (a) staff; and (b) consultants and/or contractors, expected for the financial year; if so, can a quantitative total for each reduction be provided.

(5) How many: (a) voluntary redundancies; and (b) involuntary redundancies, are expected to be executed.

(6) What is the current distribution of full-time equivalent staff across classification bands?

Kim Carr (Victoria, Australian Labor Party, Minister for Human Services) Share this | Link to this | Hansard source

The answer to the honourable senator's question is as follows:

(1) (a) The original 1.5 per cent efficiency dividend has reduced the department's operating appropriation by approximately $55 million in 2012-13.

(b) The additional 2.5 per cent efficiency dividend has reduced the department's operating appropriation by $92 million in 2012-13 (the department's Portfolio Additional Estimates Statements 2011-12, page 17).

(c) The department's operating appropriation in 2012-13 has been reduced by $2.540 million for the following measures (see 2012-13 Budget Paper No. 2):

Further information on these measures can be found in the 2012-13 Budget Paper No. 2.

(2) The department's Executive Committee has oversight of and monitors the department's financial position. Monthly reports are provided to the Executive Committee on expenditure and forecasts against budget.

(3) The department estimates that 63.1 per cent of total expenses budget is represented by staffing costs in 2012-13. The percentage equates to the proportion of total budgeted employee expenses ($2.789 billion) to the total expenses budget ($4.423 billion) as per the department's Portfolio Budget Statements 2012-13 (page 38).

(4) (a) A net reduction in staff is expected for the financial year.

*Note - ASL is the average number of employees receiving salary/wages over the reporting period, with adjustments for casual and part-time employees to show the full-time equivalent (FTE). Therefore ASL is the average paid FTE for the financial year. ASL is a different calculation to the FTE figure reported in question 6.

(b) A net reduction in contractor and consultant costs is expected for the financial year, however, the department is unable to quantify the reduction in financial terms at this time.

(5) (a) As at 4 October 2012, there have been 358 voluntary redundancies in the 2012–13 financial year. At this stage the number of voluntary redundancies expected in the remainder of the financial year is unknown.

(b) The department does not expect any involuntary redundancies in the 2012-13 financial year.

(6) The current distribution of full-time equivalent (FTE) staff across classification bands for the Department of Human Services is listed in Table A below. This table is as at 30 June 2012 and based on employees FTE substantive classification as at this date.

Table A – Staff by Substantive Classification and FTE** as at 30 June 2012

**Note - Full Time Equivalent (FTE) definition used is based on Full-Time Equivalent employees for the reporting period. Part-time employees are converted to full-time equivalents. This includes employees on leave without pay and secondment. FTE is a different calculation to the ASL figure reported in question 4.