Wednesday, September 11, 2013

Education and Health: Slash and Burn Urged On Abbott

The chairman of John Howard and Jeff Kennett’s audit commissions, Bob Officer, has urged the incoming Abbott government to follow Queensland’s example and cut thousands of inefficient jobs from education and health bureaucracies in its first term.

One of Treasurer-elect Joe Hockey’s first decisions in office will be to establish a commission of audit charged with finding savings across federal agencies.

Mr Hockey wants the commission to deliver an interim report with recommendations in time for his first budget.

Professor Officer said the new government should act quickly on the audit’s findings and avoid the more ­cautious reform path adopted by NSW Premier Barry O’Farrell, a message that will be welcomed by some Liberal MPs who want the government to copy the unpopular cuts that Mr Howard made in 1996 to return the budget to surplus.

“The earlier you start, the greater the benefits – particularly for a government potentially facing a second term,” ­Professor Officer said.

Asked whether he thought Mr Hockey would drive hard enough for cuts and reform, he said: “I suspect not. I’m an economist – I believe you should be doing these things harder.”

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