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Victoria government to cut 1,000 public service jobs

Benita Kolovos

Benita Kolovos

The Victorian government will slash 1,000 public service jobs – including more than 300 executive positions – and merge several entities, as part of its response to an independent review into the sector it claims will save $4bn.

But the treasurer, Jaclyn Symes, hasn’t accepted all the recommendations of the review into the Victorian public service (VPS), led by Helen Silver and released on Thursday, which would have led to 2,068 job losses.

The government has accepted Silver’s recommendation to cut 332 executive roles across the VPS, saving $359m over four years. It has also accepted a recommendation to cap the number of VPS5 and VPS6 positions at 15%, saving $125m over four years, but this is not expected to lead to an immediate reduction in headcount.

Victorian premier Jacinta Allan
Victorian premier Jacinta Allan. Photograph: Joel Carrett/AAP

The government estimates it will also save $50m by cutting CBD office costs and $113m on spending less on consultants and labour hire.

But the biggest savings come from overhauling the number of government agencies, boards and advisory committees.

Silver recommended 78 entities be either scrapped or consolidated and 90% of the state’s 90 advisory committees wound up – though the government has only supported the recommendation in part, committing to merging 29 entities.

Legislation will be introduced to parliament today to facilitate these changes.

Symes and the premier, Jacinta Allan, will be holding a press conference at 9am to provide more information on the changes.

Key events

Benita Kolovos

Benita Kolovos

Victoria opposition responds to Silver review

Victoria’s opposition leader, Jess Wilson, has described the review into the public sector as a “$4bn admission of failure”. She says:

Labor’s mismanagement and top-heavy bureaucracy is driving Victoria deeper into debt and starving critical funds from the frontline community safety, health and housing services Victorians deserve.

This report issues a stark warning over the dire impact Victoria’s soon to be $1m an hour interest bill is having on our capacity to deliver frontline services now and into the future.

These supposed savings are a drop in the ocean. Since this report was handed to Labor in June, Victoria’s net debt has grown by almost twice the claimed savings Labor’s cuts will deliver.

Victoria’s opposition leader, Jess Wilson. Photograph: Ye Myo Khant/SOPA Images/Shutterstock
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