The Community and Public Sector Union (CPSU) is calling for the Federal Government to stick to its promise not to increase the efficiency dividend as a way of balancing the budget.

 

CPSU national secretary Nadine Flood said that comments by the Treasurer Wayne Swan on “Meet the Press” that he does not expect any “forced job losses” were an admission that frontline public services will be reduced through voluntary redundancies and staff freezes as a result of this year’s budget.

 

“Mr Swan’s comments confirm there’ll be significant program cuts in next Tuesday’s budget which will reduce frontline services to Australians,” Ms Flood said.

 

“Mr Swan is trying to balance the budget on short-term public service cuts which will damage the ability of agencies like Centrelink, Medicare and border security agencies to do their jobs.

 

“We know that many agencies, including Centrelink, are already offering voluntary redundancies and others are operating under a freeze on new hirings.

 

“These cuts are damaging these agencies ability to serve the community and are going to get worse under the Federal Government’s increased efficiency dividend.”

 

The Federal Government has already announced it will increase the “efficiency dividend” to 1.5 per cent for all portfolios, breaking an election commitment to maintain it at 1.25%.

 

Ms Flood said the efficiency dividend was a blunt instrument which would inevitably result in cuts to services that the Australian public depended on.

 

“Agencies can’t choose to pay 1.5 per cent less of their rent or electricity bill, so the only way to meet these cuts is to shed staff and reduce services.”

 

“Public servants are increasingly being asked to do more with less, and these cuts will just reduce their ability to serve the public.”

 

“We do not want short-term cuts which might balance this year’s budget but will lead to worse services for years to come.” The increase in the efficiency dividend is set to collect $476 million from the Australian Public Service in 2011-12.