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Scott Morrison's 'leave pass' comment riles public service union Scott Morrison's 'leave pass' comment riles public service union
(4 months later)
The Community and Public Sector Union has hit back at statements by the treasurer, Scott Morrison, that the public sector should not be given a “leave pass” on efficiency.The Community and Public Sector Union has hit back at statements by the treasurer, Scott Morrison, that the public sector should not be given a “leave pass” on efficiency.
The union has warned the comments signal further cuts to services in the 3 May budget.The union has warned the comments signal further cuts to services in the 3 May budget.
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Asked about reports the government is planning to extend the public sector efficiency dividend on Tuesday, Morrison said: “Every government at every level always has to be looking at ways for it to live within its means.Asked about reports the government is planning to extend the public sector efficiency dividend on Tuesday, Morrison said: “Every government at every level always has to be looking at ways for it to live within its means.
“That means you are always looking for better ways to do things. Out there in the economy today businesses are being told that they need to produce the same quality of a product to be competitive in the market and they need to do it for less.“That means you are always looking for better ways to do things. Out there in the economy today businesses are being told that they need to produce the same quality of a product to be competitive in the market and they need to do it for less.
“Now government should not be given a leave pass from having to drive the sort of innovation in its own operations to deliver the same sorts of things that businesses and employees around the country are being asked to do.”“Now government should not be given a leave pass from having to drive the sort of innovation in its own operations to deliver the same sorts of things that businesses and employees around the country are being asked to do.”
He described this as “a key driving thought and principle” behind the budget.He described this as “a key driving thought and principle” behind the budget.
Last year’s budget said the efficiency dividend would return to the base rate of 1% from 2017-18 but leaving it at 1.25% could net an extra $610m over four years.Last year’s budget said the efficiency dividend would return to the base rate of 1% from 2017-18 but leaving it at 1.25% could net an extra $610m over four years.
The CPSU’s national secretary, Nadine Flood, hit back at claims the public sector had enjoyed a “leave pass” after significant job cuts in recent years.The CPSU’s national secretary, Nadine Flood, hit back at claims the public sector had enjoyed a “leave pass” after significant job cuts in recent years.
How is it a leave pass when 18,000 jobs have already been cut? Another 'efficiency dividend' just means more cuts. https://t.co/wGY9fPfZGoHow is it a leave pass when 18,000 jobs have already been cut? Another 'efficiency dividend' just means more cuts. https://t.co/wGY9fPfZGo
Flood said: “Making yet another round of irrational and arbitrary cuts to government services through increased across-the-board cuts with a so-called ‘efficiency dividend’ shows the Turnbull government has its priorities absolutely wrong.Flood said: “Making yet another round of irrational and arbitrary cuts to government services through increased across-the-board cuts with a so-called ‘efficiency dividend’ shows the Turnbull government has its priorities absolutely wrong.
“These cuts will inevitably lead to more job losses and the erosion of the services that ordinary Australians rely on. This is a continuation of a policy that meant one in three phone calls to the Medicare, Centrelink and child support agencies went unanswered last financial year, 22m calls missed in total.“These cuts will inevitably lead to more job losses and the erosion of the services that ordinary Australians rely on. This is a continuation of a policy that meant one in three phone calls to the Medicare, Centrelink and child support agencies went unanswered last financial year, 22m calls missed in total.
“Previous efficiency dividends contributed to the government cutting almost 18,000 jobs since 2013.“Previous efficiency dividends contributed to the government cutting almost 18,000 jobs since 2013.
“These cuts have done enormous damage, like 4,400 positions being slashed from the tax office, a completely illogical policy given the number of multinational companies and mega rich individuals who aren’t paying their fair share of tax.”“These cuts have done enormous damage, like 4,400 positions being slashed from the tax office, a completely illogical policy given the number of multinational companies and mega rich individuals who aren’t paying their fair share of tax.”
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In its March 2014 report the Abbott government’s commission of audit said that efficiency dividends are a “blunt instrument to achieve budgetary savings”.In its March 2014 report the Abbott government’s commission of audit said that efficiency dividends are a “blunt instrument to achieve budgetary savings”.
That was because efficiency dividends help government “avoid explicit and often difficult decisions”, instead reducing funding to both “areas of high and low priority” and those already operating efficiently.That was because efficiency dividends help government “avoid explicit and often difficult decisions”, instead reducing funding to both “areas of high and low priority” and those already operating efficiently.
The commission of audit noted some departments including health, environment, communications and the treasury had already had significant reductions in funding and forced redundancies.The commission of audit noted some departments including health, environment, communications and the treasury had already had significant reductions in funding and forced redundancies.
However, it added: “There is some rationale for a consistently applied low rate of efficiency dividend, given the public sector is not subject to commercial discipline to restrain costs and improve productivity.”However, it added: “There is some rationale for a consistently applied low rate of efficiency dividend, given the public sector is not subject to commercial discipline to restrain costs and improve productivity.”