Page 1770 - Week 06 - Tuesday, 6 June 2006

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Emergency services will be brought under the umbrella of the Department of Justice and Community Safety, but the statutory powers and responsibilities of the chief officer of each operational service will be preserved.

A host of regulatory functions across various government agencies will be merged into a single office within the justice and community safety portfolio.

The full year effect of these structural reforms is a decrease in the cost of public services in the order of $55 million—or 1.7 per cent of the total budget.

Mr Speaker, the issues with which a modern public sector is asked to deal are frequently complex and often require prompt action. It is more crucial than ever that the structures are responsive and adaptable to new challenges.

The changes I announce today will create a new capacity in the service to respond to emerging problems and issues, to deliver on policy priorities and to respond promptly to changes in those priorities. The coordination and guidance role of central agencies will be considerably strengthened. That means advice to government will be better advice and that means government will be better able to deliver on its own policy priorities.

Collectively, the measures announced today will result in a reduction in the size of the ACT Public Service in 2006-07 of about 500. This is similar to the decrease we achieved in 2005-06 and will once again be achieved through natural attrition and voluntary departures.

Mr Speaker, a further essential public sector reform I announce today relates to superannuation.

From 1 July this year, all new entrants to the public service will be eligible for an employer superannuation contribution of nine per cent. This will increase to 10 per cent if the employee makes a contribution of at least three per cent. Every public servant will also have access to salary sacrifice provisions if they wish to take advantage of these to increase their super.

Similar reductions in entitlement will apply to new members of the Legislative Assembly.

The superannuation entitlements of all existing workers will be unaffected.

Mr Speaker, make no mistake. This was not an easy decision for a Labor government to take. The anguish involved was almost as acute as the anxiety of looking 10 to 20 years into the future and imagining the ramifications of not making the decision.

The facts are plain. While there will be some very modest benefits flowing from this reform across the forward estimates, the real budgetary impact will not be felt for decades.

If my government had not taken this tough decision today, if I had left it for another budget, another Treasurer, another government, in 20 years time the annual


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