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Dutton says Coalition will pay to match Labor’s $8.5bn Medicare boost by cutting thousands of public service jobs Dutton says Coalition will pay to match Labor’s $8.5bn Medicare boost by cutting thousands of public service jobs
(about 5 hours later)
Opposition leader claims plan to reduce workforce by nearly all jobs added under Labor would save $6bn annuallyOpposition leader claims plan to reduce workforce by nearly all jobs added under Labor would save $6bn annually
Peter Dutton claims the Coalition would pay for a $8.5bn boost to Medicare by cutting thousands of public servant jobs, providing yet another different answer on the Coalition’s as-yet-undefined plans for the public service.Peter Dutton claims the Coalition would pay for a $8.5bn boost to Medicare by cutting thousands of public servant jobs, providing yet another different answer on the Coalition’s as-yet-undefined plans for the public service.
After weeks of contradictory statements from senior shadow ministers about how many positions the Coalition would cull if it wins government, Dutton has now stipulated his plan could save $6bn annually – potentially representing nearly all of the new positions created under Labor.After weeks of contradictory statements from senior shadow ministers about how many positions the Coalition would cull if it wins government, Dutton has now stipulated his plan could save $6bn annually – potentially representing nearly all of the new positions created under Labor.
Dutton, who has been coy on exactly how the Australian Public Service would be reduced and which workers would be targeted, suggested his plan would raise $24bn over four years. The opposition leader said those savings would finance his promise to match the government’s Medicare $8.5bn policy.Dutton, who has been coy on exactly how the Australian Public Service would be reduced and which workers would be targeted, suggested his plan would raise $24bn over four years. The opposition leader said those savings would finance his promise to match the government’s Medicare $8.5bn policy.
“The government’s put on an additional 36,000 public servants,” Dutton told a press conference in Brisbane on Monday. “We will reduce that number, and the savings there will be about $6bn a year. That’s the advice that we have.”“The government’s put on an additional 36,000 public servants,” Dutton told a press conference in Brisbane on Monday. “We will reduce that number, and the savings there will be about $6bn a year. That’s the advice that we have.”
Both Labor and the Coalition have come under pressure to outline how they would pay for Sunday’s Medicare announcements. Labor’s policy, launched by Anthony Albanese in Tasmania, was quickly matched by Dutton.Both Labor and the Coalition have come under pressure to outline how they would pay for Sunday’s Medicare announcements. Labor’s policy, launched by Anthony Albanese in Tasmania, was quickly matched by Dutton.
The government said more than $5bn of the $8.5bn had already been provisioned in its mid-year fiscal and economic outlook, with the remainder potentially paid for through yet-to-be announced policies. Dutton’s commitment to match the spending came with no financial explanation.The government said more than $5bn of the $8.5bn had already been provisioned in its mid-year fiscal and economic outlook, with the remainder potentially paid for through yet-to-be announced policies. Dutton’s commitment to match the spending came with no financial explanation.
The health minister, Mark Butler, criticised Dutton’s pledge as a “performance”, claiming the Coalition “can’t be trusted” to support Medicare. Albanese accused his opposite of only contributing “thought bubbles” to policy debates.The health minister, Mark Butler, criticised Dutton’s pledge as a “performance”, claiming the Coalition “can’t be trusted” to support Medicare. Albanese accused his opposite of only contributing “thought bubbles” to policy debates.
On Monday, Dutton suggested that removing public servants would equate to “$24bn of savings over the four-year forward estimates period”.On Monday, Dutton suggested that removing public servants would equate to “$24bn of savings over the four-year forward estimates period”.
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He claimed the public service had “grown phenomenally under the Labor party, 36,000 additional public servants, that’s at a cost of $6bn a year”.He claimed the public service had “grown phenomenally under the Labor party, 36,000 additional public servants, that’s at a cost of $6bn a year”.
Dutton said the savings from the Coalition policy to reduce the public service would total $6bn a year. Dutton said Coalition savings by reducing the public service would total $6bn annually.
Government sources indicated a saving of $6bn a year through cutting APS jobs would correspond to effectively all jobs added under Labor. The public service minister, Katy Gallagher, was contacted for comment.Government sources indicated a saving of $6bn a year through cutting APS jobs would correspond to effectively all jobs added under Labor. The public service minister, Katy Gallagher, was contacted for comment.
Gallagher has previously said that since coming to government Labor had employed about 4,000 positions at Services Australia; 4,000 in defence, home affairs and the Australian federal police; 3,600 at the National Disability Insurance Agency; 3,000 at the Australian Taxation Office; and 1,000 at the Department of Veterans’ Affairs.Gallagher has previously said that since coming to government Labor had employed about 4,000 positions at Services Australia; 4,000 in defence, home affairs and the Australian federal police; 3,600 at the National Disability Insurance Agency; 3,000 at the Australian Taxation Office; and 1,000 at the Department of Veterans’ Affairs.
Labor has maintained its growth in the public service is largely in positions previously outsourced to higher-paid outside consultants or labour hire by former governments.Labor has maintained its growth in the public service is largely in positions previously outsourced to higher-paid outside consultants or labour hire by former governments.
Dutton has indicated “frontline” services would be safe from cuts. But Coalition MPs have given radically different answers when asked how many positions could be slashed under this staffing reduction and how it would be done.Dutton has indicated “frontline” services would be safe from cuts. But Coalition MPs have given radically different answers when asked how many positions could be slashed under this staffing reduction and how it would be done.
The Nationals leader, David Littleproud, last year said all 36,000 “will go”, but then this month said: “We’re not gonna have to cut hardly any of them.”The Nationals leader, David Littleproud, last year said all 36,000 “will go”, but then this month said: “We’re not gonna have to cut hardly any of them.”
Dutton himself has been coy on how many jobs would be lost. He has suggested a focus on axing diversity and inclusion (DEI) positions along with “change managers” and “internal communication specialists”, which represent only small numbers of APS workers.Dutton himself has been coy on how many jobs would be lost. He has suggested a focus on axing diversity and inclusion (DEI) positions along with “change managers” and “internal communication specialists”, which represent only small numbers of APS workers.
The shadow finance minister, Jane Hume, suggested “natural attrition” would be a primary driver of reductions. The shadow minister for government efficiency, Jacinta Nampijinpa Price, told The Australian the Coalition “won’t be cutting” the public service workforce but would “halt” new growth, then later claimed there would be “sensible reductions” to the APS.The shadow finance minister, Jane Hume, suggested “natural attrition” would be a primary driver of reductions. The shadow minister for government efficiency, Jacinta Nampijinpa Price, told The Australian the Coalition “won’t be cutting” the public service workforce but would “halt” new growth, then later claimed there would be “sensible reductions” to the APS.
Dutton on Monday said the Medicare commitment was a “big amount of money, but we’ve identified the offset, the savings. Labor hasn’t done that”.Dutton on Monday said the Medicare commitment was a “big amount of money, but we’ve identified the offset, the savings. Labor hasn’t done that”.
“These 36,000 public servants who are in Canberra, I’m sure are good people, well-intentioned, but it brings the number of public servants to over 209,000,” he said.“These 36,000 public servants who are in Canberra, I’m sure are good people, well-intentioned, but it brings the number of public servants to over 209,000,” he said.
Gallagher has previously stressed that two-thirds of APS jobs were based outside Canberra and about three-quarters of the newly employed workers were outside the nation’s capital, including large workforces in Townsville, Geelong and Tasmania.Gallagher has previously stressed that two-thirds of APS jobs were based outside Canberra and about three-quarters of the newly employed workers were outside the nation’s capital, including large workforces in Townsville, Geelong and Tasmania.
“You just can’t pretend that you can remove 20% of the public service and not have an impact on people’s lives,” she said in January.“You just can’t pretend that you can remove 20% of the public service and not have an impact on people’s lives,” she said in January.