F76/ 25
PRIME MINISTER
FO RS February 9, 1976
NEW PUBLIC SERVICE AND STATUTORY AUTHORITY STAFF CEILINGS
As a result of recommendations made to me by the Public Service Board,
by the Treasury and by my owmn Department, further revised staff ceilings
have been approved for the Public Service and for Statutory Authorities
financed wholly or partly from the budget..
These ceilings have been set taking fully into account the services that
must be supplied to the Australian public.
They represent staff levels which the three departments believe to be
appropriate in the light of decisiops so far taken by the Government for
the efficient and economic performance of the functions of the Commnonwealth.
On 23 December the Treasurer announced immediate measures to restrain
Commonwealth Government spending which indicated the Government's then
intention to hold staff ceilings at the level they had reached at the end
of November last year.
As a result of the searching reappraisal of priorities and programs already
made, the Governmj-ent believes it is now Practicable to reduce staff Ceilings
f ur thle r.
The total of such employment, including employment under the Public Service
Act, to be reached by June 30 will now be 326,558.
This total represents a reduction of 17,480 on the level of employment which
would have been reached under ceilings set by the previous Government for
departments and authorities ( including the Parliamentary Departments) which had
previously been the subject of staff ceilings. / 2
Employment under the Public Service Act would have increased by 2.8 per
cent during the current financi& l year as a result of a decis-In by the
previous Government.
T istead there will now be a reduction compared with July 1 last year of
3.3 per cent. This will result in approximately 9,800 fewer Public Service
Act staff at June 30 than would have been the case if employment had risen by
2.8 per cent.
The wage and salaxy savings represented by this depends on a number of variables,
such as the rate of incredse that world have occurred, and the rate of
decrease that will now take place.
A precise figure thus cannot be put on the savings, but they would be of the
order of $ 20 million during this financial year and over a full year on current
average pay rates there would be a saving of some $ 80 million dollars, with
significant additional savings on overhead s.
In the case of employment in those statutory authorities for which ceilings
were set by the previous Government there will be approximately 7,680 or
per cent fewer staff at June 30 1976 than would have been the case. The
wage and salary savings in this diverse area is not as readily identifiable
as in the area of employment under the Public Service Act.
I am writing to all Ministerq informing them of the importance placed on
me.' ntaining the revised ceilings in reducing overall Commonwealth expenditure.
Departments and authorities -re expected to reach their revised staff ceilings
by processes of natural wastage such as retirements and resignations.
Ministers and the Public Service Board have been asked to keep me informed as
to any difficulty encotintered in achieving the ceilings by June
The Public Service Board, the Treasury and my own department are being asked
to review further the revised staff ceilings in the light of additional
information coming to hand in the weeks ahead, as the result of the Government's
ongoing review of expend-tture, and to bring forward suggestions of further
reductions in such revised staff ceilings where appropriate. / 3
The new levels for Public Service Act and statutory authority employment
have been made necessary by the enormous and unreasonable growth of the
public sector ovnr the past three years. As evidence of this, at the
end of December 1972 the Pablic Service totalled 134,465. This was
exclusive of the Postmaster-General's Department which had a staff of
119,709 at the time and of staLatory authorities.
At June 3n 1975 the Public Service had reached 160,177 and would have gone
on to reach 164,650 at June 30 this year if policies which then Lxisted
hadd continued. This is a growth of over 25,7C3 oi: 19 per cent in 2 years
in employment under the Public Service Act alone.
The new level for June 30 1976 will be 154,881 in Public Service Act
employment and 171,677 for statutory authorities outside the Public Service
Act and wholly or partly dependent on the Budget.