The 13 May Budget will be the toughest in a decade and is seen by many as the first real test of the Rudd Government's economic credentials.With inflation and interest rates on the move and continuing global instability, there is growing pressure from commentators and business groups for large scale cuts to government spending and public services.
At the same time we are looking to the Rudd Government to use its first Budget to deliver the compassion and decency the Australian community voted for at the election.
We know the Government's 'razor gang' will be imposing a one-off 2% extra efficiency dividend on top of the 1.25% dividend already in place. These cuts were announced pre-election and are already locked in.
But this has not stopped us taking up the case for a new approach to PS finance.
In our view, blunt arbitrary measures such as the 2% extra dividend do nothing to improve public sector productivity and damage the capacity of public service agencies to deliver services effectively.
Arbitrary cuts inevitably lead to 'false economies' which cost taxpayers more in the long run.
Put simply, if you cut staff in Centrelink or Medicare offices you will effect the quality and timeliness of the service clients receive.
Is it really a saving to reduce the quantity, quality and scope of ABS surveys that are used by businesses and Governments to plan future developments? A reduction in ATO staffing undermines efforts to minimize tax avoidance and maximize revenue collection.
Our ability to respond to the challenges of climate change will not be enhanced by cutting programs in CSIRO or the Bureau of Meteorology.
At a time when the public service is struggling to attract and retain experienced and talented employees, short term measures won't help.
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