Cost of living pressures mean Victorian families have to carefully consider every dollar. They rightly expect their government to do the same.
The Victorian Labor Government is making sure the public sector is focused on Victorians and their priorities: good schools, good hospitals, safe communities – and helping families with the cost of living.
Victoria’s public service is characterised by professionalism, dedication and hard work, made up of people who deliver high-quality services to Victorians. It is the responsibility of the government to focus the public sector on what matters most, ensuring services are delivered efficiently and sustainably by achieving better value for money.
Earlier this year, the government commissioned an independent review to zero in on waste and inefficiency, with a focus on returning the non-frontline public service towards its pre‑pandemic share of employment.
The Victorian Government welcomes the Independent Review of the Victorian Public Service: Final Report, by Ms Helen Silver AO, former Secretary of the Victorian Department of Premier and Cabinet. The government thanks Ms Silver for the comprehensive review and report.
In making recommendations the Review has considered the role of the government, overlapping responsibilities, and opportunities to enhance service delivery effectiveness and efficiency.
The Victorian Labor Government will be implementing the majority of these recommendations, and as a result will deliver over $4 billion of savings.
We will deliver these savings through measures including:
- removing 332 executives and executive-like roles in the public service, which the Review estimates will save $359 million
- further reducing spending on consultants and labour hire, saving $113 million
- cutting CBD office costs now that more Victorians are working from home, saving over $50 million.
We will also address duplication by merging government entities that serve the same function, such as:
- combining the separate food safety regulators for dairy and meat into a new Safe Food Victoria
- combining the authorities for fishing and hunting into a new Outdoor Recreation Victoria
- bringing the public health promotion work of VicHealth into the larger Department of Health
- winding up entities that are no longer needed, such as Sustainability Victoria, which doubles up functions of the Department of Energy, Environment and Climate Action.
This government has been clear that we will never make cuts to the frontline services that families rely on.
We have rejected recommendations affecting frontline services including kinders, TAFEs, and dental care for children.
Today, there are more frontline services for Victorians than before the pandemic.
Compared to 2019 there are:
- an extra 671 police and Protective Services Officers – an increase of 4.1%
- an extra 3,890 teachers in our government school system – an increase of 9%
- an extra 10,282 nurses and midwives – an increase of more than 30%
This response lays out the immediate actions the Victorian Labor Government is taking to rebalance the public service and reform government entities: making sure the public sector is focused on what matters most.
It is an important part of our responsible economic and fiscal plan.
We are reducing debt as a proportion of the economy and are on track to deliver an operating surplus, all while continuing to deliver the services and infrastructure Victorians rely on.
Victoria’s economy is growing, having grown faster in relative terms than any other state over the past decade. Business investment is at elevated levels, and the labour market remains healthy. Victorian contributions such as abolishing stamp duty for commercial and industrial property, cutting the regulatory burden by $500 million by 2030, driving innovation in the health care sector and committing to reducing the number of regulators will contribute to a more productive economy.
Empowering the public service and equipping workers with the right tools will boost productivity in the public sector – enhancing service delivery, delivering better outcomes for Victorians, and reducing costs for businesses and communities to unlock productivity in the economy.
By zeroing in on inefficiency and non-priority programs, the government is able to continue investing where it matters most to Victorians.
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