Key Takeaways
- The Victorian government has implemented measures to reduce the public sector, including axing 29 public entities and boards
- 332 executive and senior technical jobs will be stripped from the Victorian Public Service, and 1000 jobs in total will be cut across the public sector
- The government claims these measures will save the budget more than $4 billion over the next four years
- Some entities, such as VicHealth, will be absorbed into other departments, while others, like Cladding Safety Victoria, will be wound up
- The government has rejected some recommendations, including ceasing the rollout of government-funded Early Learning and Childcare Centres
Introduction to the Public Sector Review
The Victorian government has taken steps to reduce the size of its public sector, following a review by Helen Silver. The review recommended significant cuts to the public sector, including the axing of 500 public entities and boards. However, the government has chosen to implement more moderate measures, with 29 entities and boards to be axed. This decision is likely to be seen as a compromise between the need to reduce the size of the public sector and the need to maintain essential services.
Job Cuts and Restructuring
The government has announced that 332 executive and senior technical jobs will be stripped from the Victorian Public Service, with a total of 1000 jobs to be cut across the public sector. This is approximately half the number recommended by the review. The government claims that these measures, combined with reductions in the use of consultants and office space, will save the budget more than $4 billion over the next four years. The job cuts and restructuring are likely to have a significant impact on the public sector, with many employees facing redundancy or redeployment.
Changes to Public Entities
Some of the most significant changes include the cessation of VicHealth as a standalone entity, with its functions to be absorbed into the Department of Health. Infrastructure Victoria will be "refocused" with a reduced budget, after the government rejected the review’s recommendation to abolish it. Other entities, such as Cladding Safety Victoria, the Trade and Investment Board, and the Road Safety Camera Commissioner and Reference Group, will be wound up. Additionally, some existing entities will be merged, with Recycling Victoria folding into the Environment Protection Authority and multiple registration boards consolidated into a new Business and Processions Regulator.
Rejected Recommendations
The government has rejected some of the review’s recommendations, including the proposal to cease the rollout of government-funded Early Learning and Childcare Centres and shift them into the hands of private providers. This reform would have booked savings of more than $350 million, but the government has chosen to maintain the current system. This decision is likely to be seen as a victory for those who argued that the government should continue to play a role in providing essential services, rather than relying on private providers.
Impact on the Budget
The government claims that the measures implemented will save the budget more than $4 billion over the next four years. This is likely to be seen as a significant achievement, given the current economic climate. However, it is also important to consider the potential impact on the public sector and the services it provides. The job cuts and restructuring may lead to a reduction in the quality of services, or a reduction in the number of services available. Additionally, the winding up of certain entities may lead to a loss of expertise and knowledge, which could have long-term consequences for the state.
Conclusion
In conclusion, the Victorian government has taken steps to reduce the size of its public sector, following a review by Helen Silver. While the government has implemented some significant changes, it has also rejected some of the review’s recommendations. The measures implemented are likely to have a significant impact on the public sector, with many employees facing redundancy or redeployment. The government claims that these measures will save the budget more than $4 billion over the next four years, but it is also important to consider the potential impact on the services provided by the public sector.
