Victorian public service job cuts flagged, up to 3000 people to be affected

Employee expenses were projected to be $37.53 billion this financial year, up from $24.99 billion in 2018-19.

Victoria’s wages bill has consistently exceeded forecast costs, according to analysis by the Parliamentary Budget Office requested by the opposition, which found it was $755 million higher than projected for 2023-24.

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The government last year rejected a recommendation by an independent review to merge the state’s 76 independent government health services after community backlash.

Symes said she was determined the review wouldn’t be for nothing and hoped to accept all recommendations, “because it’s needed to address the budget recurrent problem that we have”.

“Can you consolidate some of those operations across government in similar entities? I think yes. But again, I don’t want to pre-empt the recommendations.”

Department secretaries and ministers had already been asked to identify possible cuts, as revealed by The Age earlier this month.

An interim report will be handed down in April to incorporate the public service cuts into the state budget – which is due to be released on May 20 – before a final report by June 30.

Karen Batt, Victorian secretary of the Community and Public Sector Union, said she would fight the cuts.

“The bone is bare,” she said. “Crazy, ill-thought-through proposals end up costing the government more as our population booms and demand for services grows.”

The union has long called for the government to bring external agencies and authorities back into their relevant state departments, particularly in the arts and Department of Transport and Planning, to avoid duplication.

Victorian Trades Hall secretary Luke Hilakari said making comparisons between frontline and back office staff didn’t wash. He questions who would pick up the work dropped by up to 3000 people.

“What gets cut? Who works harder?”

Shadow treasurer James Newbury said it was a “hoax review” and a diversion from cost increases in the government’s infrastructure pipeline.

“Jacinta Allan is an absolute queen of covering, not governing,” he said.

Opposition spokesman for public service innovation Brad Rowswell said the announcement was a desperate attempt to pay down debt.

“After a decade of wage bill blowouts, financial mismanagement and excessive public sector executive growth, Labor is now pretending to care about delivering value for taxpayers’ money,” he said.

Victorian Chamber of Commerce and Industry chief executive Paul Guerra welcomed the review.

“It’s never a good environment where we’re looking at removing jobs,” Guerra said, but he added, “We’d much rather see the debt being reduced by costs being reduced, rather than seeing more taxes put on business and everyday Victorians.”

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