The Liberal Government’s number one priority is jobs. That’s why we are considering a wage pause for the public sector for 12 months – it will save jobs.
The concept of a wage pause isn’t new, in fact the exact same measure was proposed by former premier David Bartlett in 2009.
It has been used successfully by the private sector, including Tasmanian-based companies Norske Skog and Pacific Aluminum, to contain costs and retain workforce levels.
There is no denying Tasmania is facing difficult circumstances due to Labor’s financial mismanagement.
The simple truth is Labor and the Greens failed to meet their savings targets. In 2011-12 Labor and the Greens said they would find savings equivalent to 1,700 full time public sector jobs.
However, after making some initial progress, Labor and the Greens gave up on the task and only reduced the public sector by 700 full time employees.
The Liberal Government is working very hard not to deliver Labor’s 1,000 job cuts and by pausing public sector wages for one year, we would save 500 of those jobs.
This is not about cutting wages. The fact is the Tasmanian public sector cannot continue to live beyond its means. Today, public sector wages are more than $100 million per annum higher than forecast just three years ago.
Since 2003-04 public sector employment costs have grown by more than 80 per cent. Every dollar we borrow to fund services today must be repaid later on, which means higher debt and fewer government services into the future.
The Liberal Government has already frozen for one year the salaries of MPs, senior executive service staff, ministerial staff and board fees.
By taking responsible and prudent action now we will prevent more severe budget cuts in future.
We have been consulting with public sector unions regarding the upcoming budget and asked for alternative cost saving proposals.
It is important to note that no final decisions have been made.
The Liberal Government is getting on with the job of delivering our long-term plan for Tasmania. We are committed to rebuilding Tasmania’s economy and fixing the budget mess to tackle the jobs crisis.
Peter Gutwein, Treasurer
