Public sector sold short for contract conditions
Criticisms are being laid at the Victorian Coalition government’s efforts to cut costs, which have seen 4500 full-time public servants sacked while $145 million was spent on contractors to fill the gaps.
Insiders say it is a technique for the government to impose strict stipulations on contract workers without the accountability of keeping jobs inside departments.
Documents obtained by News Corp publication The Herald Sun allegedly show the Napthine Government had to add the cost of 3307 contractors to soaring redundancy payments from the two-year axe-wielding, cost-cutting spree.
Reports say the Victorian Department of Education and Early Childhood Development was the biggest spender, which spent around $29.5 million on contractors to fill departmental vacancies.
Three of the state’s departments had to spend over $20 million on contract workers to catch shortfalls, contributing to a total $145 million bill to maintain productivity.
The cost-cutting program has been called a success by state Treasurer Michael O’Brien, who says the Coalition engaged fewer contract staff last year than Labor did in 2009-2010.
O’Brien says the outsourcing has brought about a $316 million budgetary surplus and a more efficient public service.
“This rebalancing has allowed the Coalition to build more capacity in the state's finances to prioritise investment in frontline services that improve safety, health services, education and community services across Victoria,” he said.
“Delivering value for money for Victorians is a key part of the Coalition Government's economic strategy.”
The cuts have mostly occurred in the lower levels of government, which the number highly-paid executive positions barely moving at all.
Community and Public Sector Union state secretary Karen Batt says; “The Government is replacing its permanent workforce with insecure contractors.”