The Coalition's plan to cut 41,000 public service roles is set to focus solely on Canberra, as confirmed by Peter Dutton. This announcement raises significant questions regarding the feasibility of such cuts without affecting frontline or security-related roles.
Mr. Dutton stated that no jobs would be lost outside of Canberra, where only one-third of public servants are located. He indicated that some of the cuts could be achieved by not filling current vacancies. Nationals leader David Littleproud echoed this, suggesting that many positions remain unfilled and are budgeted.
In his budget reply speech, Mr. Dutton claimed that reversing Labor's increase of 41,000 public servants could save about $7 billion annually, though it was clarified that this saving would take five years to realize, with frontline jobs exempt from cuts.
Labor has contested the viability of these cuts, arguing that they would lead to the closure of entire departments, as there are only 60,000 public servants in non-frontline roles across the country. The opposition has ruled out forced redundancies, proposing instead a strategy involving voluntary redundancies, natural attrition, and a hiring freeze.
Questions over feasibility
Former Public Service Commissioner Andrew Podger expressed skepticism about the Coalition's ability to meet its promised cuts within the set timeframe, stating, "the numbers don't add up." He estimated a natural attrition rate of around 4,000 per year for Canberra public servants, implying that relying solely on this method would be a slow process.
While voluntary redundancies could expedite job reductions, they incur initial costs, negating immediate savings. Last year, over half of the staff who departed the APS came from frontline roles, yet the Coalition has not defined what it considers frontline work.
According to budget documents, as of June 30, 2024, only 36.9% of the APS workforce will be in Canberra, translating to nearly 70,000 jobs spread across various states and territories. Prime Minister Anthony Albanese argued that limiting cuts to Canberra would make it impossible to exempt frontline and security roles.
He highlighted agencies like Services Australia and national security bodies headquartered in Canberra, questioning how the proposed cuts could occur without impacting essential services. Albanese criticized Dutton's readiness for government, stating, "Peter Dutton is showing that they are just not ready for government."
Dutton's current stance seems inconsistent with comments from Liberal Senate candidate for the ACT, Jacob Vadakkedathu, who suggested that cuts would occur nationwide. Despite the controversy, Mr. Dutton maintains that his policy will yield billions in savings annually, backed by work with the PBO.
Labor argues that the increase in public service roles during its tenure was primarily due to insourcing previously outsourced work. Independent Senator David Pocock criticized Dutton's policy as an ideological attack on public servants, asserting that cutting 41,000 positions without affecting crucial services is simply not feasible.
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