Deep cuts may have time to heal
With nearly 6,000 jobs lost, the minister in charge of Australian Public Service jobs cuts has hinted the blood-letting may be over.
The Abbott government's cull has cost about 5700 jobs in Canberra, well short of the dire predictions that up to 12,000 were on the line.
There are now about 59,600 public servants working in the ACT, down from 65,353 in the months before the Coalition was elected.
Public service minister Eric Abetz said this week that he would begin reviewing the public sector hiring freeze, which was imposed for the duration of the job cuts.
While the worst predictions of Labor and the union have not come true, insiders say real damage has been done.
Property Council of the ACT executive director Catherine Carter says the cuts have had a “profound” impact on the ACT economy.
“Those job losses from the public service [have] had an impact in Canberra,” Ms Carter said.
“I'd point to not only the job losses themselves but the Canberra property market and the underlying sub-lease [office] vacancy rate that tells the story, frankly.
“After years of topping the table of state and territory economies, the ACT has recently fallen to sixth of eight economies.
“Building approvals are down and unemployment is trending upwards.”
Canberra Liberals leader Jeremy Hanson conceded told Fairfax Media that the worst might now be over.
“There's no doubt there's been a concerted effort by the federal government to clean up Labor's mess and there's no doubt Canberra has paid more than its fair share and I would hope that is over, and based on the indications I have, there shouldn't be much more pain,” he said.