We are unequivocal in our commitment to fixing the budget mess left by the former Labor-Green government.
The Liberal Government’s proposed pay freeze will save nearly $180 million and 500 jobs. The pay freeze is an integral part of our Budget.
We met with union representatives on three occasions and asked repeatedly that they put forward savings measures. With the exception of the ANMF, no union did.
Time for negotiating on this issue with unions has past.
During our Budget negotiations we have been consistent in being open to credible alternatives to our plan which could broadly achieve the same savings.
Until today, no such credible alternatives had been put forward.
MLCs today have put forward alternatives which the Government believes will address their concerns, while still achieving broadly the same public sector salary savings.
The Government is willing to support the removal of increments from the pay freeze legislation, and instead support an amendment which will see pay paused for 18 months, instead of 12 months, and will limit pay rises to two per cent for six months beyond that.
This move will address concerns of some MLCs that the freeze on increments would have a disproportionate impact on more junior public sector employees. The extension of the freeze for an additional six months will achieve broadly the same savings arising from the increment freeze, except in 2014-15. This shortfall in 2014-15 will be addressed by a profiling of the 700 FTE job reduction in the budget and forward estimates.
We are also prepared to support another proposal to extend the scope of the legislation to include judges, magistrates, the Solicitor-General, Auditor-General, the Director of Public Prosecutions and the Governor will also be supported. Savings from this measure will be around $200,000 per year.
A suggestion to apply a sunset clause will be applied to the legislative control on wages; and the ability of the Government to make regulations to control the authority of the Tasmanian Industrial Commission will be applied to salaries only, and for the period provided for under the Bill. This avoids any confusion that the Bill could result in regulations that impact on issues other than salaries.
I congratulate members of the Upper House who have been prepared to put forward alternative budget savings as part of the budget process, unlike Lazy Labor who effectively share the balance of power in the Upper House, but who have refused to put forward alternatives. Today’s vote on the Bill will be close and I’m not going to speculate on the outcome other than to say that I sincerely hope that it is supported, thereby allowing us to avoid the loss of an additional 500 jobs.
Peter Gutwein, Treasurer
