WA govt slashes 1500 public sector jobs
The opposition has accused the West Australian premier of child-like petulance in the face of budget woes that will see 1500 public service jobs slashed.
The voluntary redundancies are part of a range of measures announced by the WA government on Thursday aimed at saving $2 billion over the next four years.
Government agencies will be expected to do more with less as an additional one per cent efficiency dividend is introduced, although schools have been spared.
Synergy, the Water Corporation and LandCorp will also face a 10 per cent per annum reduction in their operating subsidy payments, but Treasurer Mike Nahan said it would not effect household bills.
While the WA government projected a $175 million surplus for 2014/15, it now concedes a deficit could be on the cards.
Dr Nahan also flagged more belt-tightening to come in the economic mid-year review in December and in next year's budget.
Premier Colin Barnett said he was frustrated at having to take such steps, as the state struggled with lower revenue due to a sharp decline in the iron ore price and a fall in WA's GST share.
"We can deal with the iron ore price fall by itself, or we could probably deal with the GST fall by itself, but we can't deal with both together," he said on Thursday.
"I am just becoming extremely frustrated that the strongest, hardest working part of the Australian economy is being held back for poor reasons."
But opposition treasury spokesman Ben Wyatt said Mr Barnett had no one but himself to blame for spending outside the state's budget while relying on a volatile revenue base.
"In respect to Mr Barnett's anger, I equate it to something like my four-year-old angry at me when I confiscate her paint after she's painted my living room walls," Mr Wyatt said.
"The only difference being my four-year-old takes more responsibility than Mr Barnett has appeared to have done this morning."
Community and Public Sector Union WA secretary Toni Walkington said getting rid of experienced employees in the public service was not addressing the problems of fiscal mismanagement.
Ms Walkington, also the WA secretary for the Civil Service Association, said vanity infrastructure projects were driving the biggest increase in government expenditure with "other operating costs" making up a quarter of total expenses, up 14.2 per cent from 2008.
Another public sector union, United Voice, said the efficiency dividend would cost WA Health and state hospitals an "unacceptable" $80 million.
However, WA's Chamber of Commerce and Industry said reducing government spending rather than increasing taxes was "exactly the right approach".
Federal finance minister Mathias Cormann has repeatedly said there would be no changes to the GST carve-up in this term of government.
