M E M II
FOR MEDIA THURSDAY NOVEMBER 6 1980
REVIEW OF THE FUNCTIONS OF GOVERNM-. ENT
AND OF PUBLIC SERVICE STAFFING LEVELS
It has been the Government's continuing aim since 1975 to
mainta'in strict control over the size of the public sector and
of the Public Service.
The Government remains committed to the principle that growth
in the private sector, not expansion of the public sector, is
the right course if permanent reductions in unemployment and
increases in prosperity and wealth for the community as a whole
are to be achieved.
The imposition of limits on the staffing of Public Service
departments and authorities has been an important weapon in
restraining the growth of Government. Since we came to office
effective staff ceilings have been imposed and the number of
Commonwealth employees in areas subject to staff ceilinpgs has
been reduced by over 10,000.
At the same time, where there are areas of genuine need we have
increased staffing to provide the necessary services. Thus
some 65 new regional offices for the Department of Social Security
have been opened in the last five years, and staffing in : hat
Department has increased by 3,000.
Similarly, the Commonwealth Employment Service, since the
Norgard Ieport was accepted by the Government, has considerably
expanded the services it provides to those seeking work for
example, the Special Youth Employment Training Program and
the School to Work Transition Program. Staffing has increased
by about 1,000 in the past five years.
There are also areas of Government activity which are commercial
by nature, or akin to commercial for example, the Postal and
Telecommunications Commissions, and the Government Defence
factories. The Postal and Telecommunications Commissions have
experienced large increases in demand in recent years. They have
for the most part kept pace with this growLh" by increased efj: icienc-,.
But their business is expanding so strongly that in 1979-80 staffigC:
levels in Australia Post and Telecom increased by nearly
1,500 and that upward trend is continuing. 1/ 2
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Also, because of our increased defence effort, employment
in the Government Defence factories is currently rising
and this trend is expected to continue. Again, this reflects
a necessary demand which must be met either by increased
production in Australia or overseas.
Thus our record of an overall, net reduction of more than
10,000 in total public service staffing has been achieved
even after making necessary increases in some areas so that
appropriate services can be provided to the public. Those who
analyse changes in Commonwealth staffing levels need to bear
that in mind.
The Government's; achieveme~ t in reducing the total of staffing7
even while increasing staffing in some areas to meet commercial
demands and to provide better services, also needs to be compared
with the record of the previous Government where the number of
Commonwealth Government employees increased by 52,000 from
June 1972 to June 1975.
Associated with the announcement on Sunday of a reduced Ministry
and fewer departments, the Government's policy of strict controls
on staffing levels in Commonwealth employment will continue.
The Government is reviewing the provisional staff ceilings set
for departments for 30 June 1981; that review will also identify
the staff savings to be ac'hieved through the departmental
rationalisation. The Government will maintain strict restraint on administrative
costs in 1980-81. Departments and authorities will again be
required to live within the Budget allocation provided to theM.
Controlling the size of the public sector is not just a matte.-
of restraining growth in staff numbers and administrative costf;.
It is also, and most importantly, a matter of re-examining thE:
functions of governiment. This is particularly timely at the
beginning of a new term of office.
The Government has accordingly established a Committee of Senior
Ministers to review the functions of all Commonwealth departments
and other associated agencies.
The review will recommend to the Government which functions mi: ght
be reduced, eliminated, or altered so as to achieve a more
efficient and economical administration of continuing
Commonwealth responsibilities. The review will also examine areas
where Commonwealth activities overlap the States or unnecessa: dly
intrude on the private ector.
w3
The review is a useful further step in the Government's
continuing commitinanrit to resLt-i-n the-size of the public sector,
and Cor" ronwealth outlays in particular, as part of the
Gove rnme nt's8 overall economic strategy, which was endorsed
at the recent Federal elections, There is also a need to avoid
intrusion into ar~ as of ac~ iIit. ycapable of being performed
efficiently by the private sector.
t-sa -time, the Commonwealth will be ensuring that the
less well-off ii) the community are protected, that activities
are concentrated on areas of greatest need, and that the cquality
is mz' 4ntained of those services which are prop vZXXIpL'rovic. lgd;. by
the Cormnonwealth.
The Comittee, which1 is to be chaired by tile Minister for Induatry
and Commerce, Phillip Lrch, also inc= ius the-11iTit7ter f'OTPrimary
Incostry, Peter Nixon, the Treasurer, John Howard, the
Minister for Finance, paine Margaret Guilfoyle, and the Vinister
for Erploymeri. Land You -fairs.,-Ian Viner.
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