❓ WA Parliamentary Question on Notice regarding the Treasurer's portfolio, specifically requesting details on how departments and agencies achieved the 3% efficiency dividend, the impact on services, and any new services provided. The answer details specific initiatives undertaken by the Department of Treasury and Finance.
AnsweredQoN 1342Legislative Council
QuestionView source ↗
For each Department and Agency within the Treasurer’s portfolios, please provide, -
(a) a description of each of the initiatives to achieve the relevant Agency’s 3 percent efficiency dividend;
(b) a description of how the original services, provided by the initiatives that were cut in (a) above, have been met by other areas of that Agency;
(c) if services have not been provided to their original level, a description of where the Agency is increasing its level of service to create efficiency; and
(d) for each new service provided by the Agency, a description of the monetary and non-monetary, costs and benefits, attributable to the new service?
(a) a description of each of the initiatives to achieve the relevant Agency’s 3 percent efficiency dividend;
(b) a description of how the original services, provided by the initiatives that were cut in (a) above, have been met by other areas of that Agency;
(c) if services have not been provided to their original level, a description of where the Agency is increasing its level of service to create efficiency; and
(d) for each new service provided by the Agency, a description of the monetary and non-monetary, costs and benefits, attributable to the new service?
AnswerView source ↗
Answered
27 November 2009
Responded by
Parliamentary Secretary representing the Treasurer
Response time
36 days
Department of Treasury and Finance
(a) The initiatives to achieve the three per cent efficiency dividend are:
(1)
Building Management and Works - Delay Filling of Vacant Positions:
Delaying the filling of vacant positions in Building Management and Works to reduce salary expenditure.
(2)
Building Management and Works - Reduce Consultancy Services:
Reduction of consultancy services expenditure by the Office of Strategic Projects.
(3)
Building Management and Works - Savings in Corporate Services Achieved as Part of the Transfer from Former Department of Housing and Works to the Department of Treasury and Finance:
Reduction in corporate services in Building Management and Works, following the transfer of the Works function of the Department of Housing and Works to the Department of Treasury and Finance in February 2009.
(4)
Building Management and Works - Reduce Supplies and Services, Including Human Resources and Consultancy Services:
Some improvements to operational systems to be put on hold, and the use of specialist consultancy services to be limited.
(5)
Building Management and Works - Postpone Implementation of the Fremantle Prison Heritage Precinct Master Plan to Allow Original Schedule to be Met:
Slowing the implementation of the Fremantle Prison Heritage Precinct Master Plan. As the implementation of the Fremantle Prison Heritage Precinct Master Plan is ahead of schedule, slowing the completion of the remaining recommendations will return the program to its original timeframe.
(6)
Building Management and Works - Suspension of Work on '5 Star Plus Stage 2' Sustainability Plan, to be Replaced with a New, More Cost-Effective Sustainability Policy Framework:
Suspension of work on the sustainability initiative 5 Star Plus stage 2, including reduced advertising/publicity and removal of the need to run state-wide workshops to introduce the measures to industry.
(7)
CEIID Initiative - Cease Use of Consultants and Graduate Program:
Immediate cessation of the use of consultants on Centre for Excellence and Innovation in Infrastructure Delivery (CEIID) reform projects as well as cessation of the CEIID graduate program. Consultants were previously used to support project teams and undertake research of best practice. The graduate program was intended to foster greater mobility between CEIID agencies with the potential for better matching resources to projects, and the development of a career path for business graduates.
(8)
Gateway Initiative - Reduction in Reliance on External Resources:
Reduction in the reliance on external (private sector) resources to conduct Gateway reviews and slow the growth of the Gateway Unit in Government Procurement.
(9)
ICT and Strategic Procurement Sourcing - Reduction in Use of Consultants:
Reduction in the reliance on the use of private sector consultants in meeting agency specific ICT contracting demands, and reduction in resources working on Common Use Arrangements.
(10)
Procurement - Reduction in BusinessDevelopment, Reporting and Analysis:
Reduction in the resources available for procurement business development, reporting and analysis and the management and promotion of Common Use Arrangements.
(11)
Procurement - FTE Savings Achieved through Natural Attrition and Realignment of Duties:
Includes abolition of the Level 8 Procurement Policy Officer within Government Procurement's Executive. This position was dedicated to policy development and advice.
(12)
Shared Services - Reduction in Use of Consultants:
Reduction in expenditure on consultants at the Office of Shared Services.
(13)
Shared Services - Rationalisation of Staff while Maintaining Focus on Core Transactional Areas of Accounts and Payroll Processing:
Reduction in staff numbers at the Office of Shared Services by approximately six Full Time Equivalents (FTEs).
(14)
State Revenue - Rationalisation of Staff to Focus on Areas of Greatest Risk and Revenue Yield:
Reduction in staff numbers at the Office of State Revenue by approximately 35 Full Time Equivalents (FTEs) across the Compliance, Customer Service and Staff Training, and Debt Recovery areas.
(b) The Department has implemented the above initiatives and monitors financial and FTE impacts associated with these initiatives to ensure that the efficiencies are realised.
In several instances, new service approaches are planned, including the implementation of the Works Reform program that is delivering a range of initiatives covering all four of the Building Management and Works service categories.
These are outlined in the Works Reform BusinessSolutions Plan that was released in June 2009. The plan has 55 recommendations to reform the planning and project management for the design, construction, maintenance and leasing of Government non-residential buildings.
The Works Reform Plan aims to deliver $280 million in savings over the next four years (as outlined in section 12 of the Works Reform BusinessSolutions Plan).
In some areas of the Department, service reductions and a reconfiguration of service delivery has occurred including:
· the reduction in procurement reporting and publications analysis. This has been supplemented by working more closely with agencies to streamline their processes;
· scaling back Common Use Arrangements promotional activities and the discontinuation of the Treasurer's Awards;
· Common Use Arrangement renewal program has been extended over a longer period of time;
· Developed a user pays model to cover the costs for conducting Gateway reviews; and.
· Reductions in State Revenue services have had corresponding impacts in customer service levels, a reduction in audit coverage and increasing debt levels. This impact is being mitigated in part by undertaking business in different ways through more flexible deployment of available resources, a greater focus on self assessment, and revised risk management strategies. Notably, notwithstanding the reductions, customer service levels are still meeting the standards outlined in the Customer Charter.
(c) Nil
(d) Nil
Department of Commerce
(a) The Department has implemented the following savings measures:
Saving measure A - Departmental Overheads:
Reduction in departmental overheads for Office of Director General and Corporate Services, including communications, finance, administration, human resource management, information systems, and corporate information. Planned expanded expenditure on employment has been curtailed.
Saving measure B - Consumer Protection:
Reductions in staffing have occurred across the regulation of associations, finance and valuation, the register of encumbered vehicles, weights and measures, consumer protection community education and in business improvement functions. Additionally, there have been reductions in budget for non-salary costs such as legal services and publications.
Saving measure C - Science, Innovation and Business
:
A budget provision originally used to engage management support for indigenous community stores in remote communities, was identified as a saving as it had not operated for over 5 years. Efficiency savings were being achieved from that source without impacting on mainstream operations.
Saving measure D - WorkSafe:
A range of cost savings and efficiency measures have been implemented across WorkSafe division. Inspectorate services have been maintained.
Saving measure E - Labour Relations:
Savings in the Labour Relations Division have been achieved by delaying recruitment to fill selected vacancies by up to three months. There have been reductions in expenditure on stationery, consultants, travel, and training conferences and seminars.
b) No original services have been cut but delays in recruitment have required support from other services within each division.
c) See (a) and (b) above.
d) No new services have been provided by the department.
Department of Housing
a) Administrative savings through economies of scale are being achieved through the amalgamation of the administration of the multiple shared equity schemes into the Keystart Housing Scheme structure.
Administrative savings through some of the Country Housing functions being delivered through the Keystart structure.
Savings in the reduced use of consultants.
Reductions in travel expenses.
Restructure of management positions to reduce duplication in functions and improve operational efficiencies.
Reduced duplication of program management and administration costs for Community Housing Joint Ventures.
b) Keystart already provides shared equity schemes for the Department and in the case of Country Housing Authority provides housing loans in regional Western Australia. The transfer of the remaining schemes and functions provides greater economies of scale.
Cost savings achieved through improved efficiencies and reduction in duplication of program management and administration. Only essential use of travel and better use of alternative communication means such as the electronic media. Reduction in consultancy services through the better use of in house expertise.
c) Not applicable
d) Not applicable
Chemistry Centre
(a) There are two initiatives which ChemCentre has budgeted in order to meet the 3% efficiency:
(i) ChemCentre made savings against rent and received cash from fee for service work above budget. As a consequence Chemcentre had surplus cash above budget for the year ending 30 June 2009. The 3% efficiency saving on appropriations was paid for out this cash surplus.
(ii) For the year ending 30 June 2010 and the out years, Chemcentre is looking to replace contract IT with a person employed by ChemCentre on a three year contract. This is expected to save at least the 3% efficiency dividend requested by State Government.
(b) As the savings against appropriations in 2009 were taken out of unpaid rent and resulting cash surpluses, services were not affected by the 3% efficiency.
(a) In the out years efficiencies created through better use of resources will not affect services.
(c) N/A
(d) There were no new services provided by ChemCentre
Small Business Development Corporation
(a) The Small Business Development Corporation undertook a review of its services to identify areas where the three (3) per cent efficiency dividend could be achieved. This included not replacing redundant or one off programs, and through the deferral, or not proceeding with existing and/or planned minor programs.
(b) The programs and activities targeted to achieve the three (3) per cent efficiency dividend were those with the least impact on core services of the Corporation and as such, these services have not been met by other areas of the Corporation.
(c) The required efficiency has been achieved through a reduction in appropriation with minimal impact on the provision of services.
(d) The following new services have been provided as a result of the 2009-10 budget process:
·
Indigenous Small Business Development Program ($300 000 per annum)
As a result of the government's economic audit, a recurrent amount of $300 000 has been transferred to the Small Business Development Corporation from the Department of Commerce for the Aboriginal Economic Development Program. The funding will be used for programs in support of Indigenous enterprise throughout Western Australia. Given the early stage of the program, it is not possible to quantify the non monetary costs and benefits of the new service.
·
BizFit Small Business Resilience Program ($2m over 2 years)
$1m has been provided in each of 2009-10 and 2010-11 to deliver a business resilience program for Western Australian small businesses. BIZFit represents a key initiative to address this issue by providing hands on training, support and guidance to build business resilience, regardless of the prevailing economic conditions. The program will run for two years and is expected to impact over 2 500 small businesses located in remote, regional and metropolitan WA. Program partners include the Small Business Centre network; Regional Chambers of Commerce, Local Government Authorities and the Curtin Business School.
WA Industrial Relations Commission
(a) Reduction in Staffing and Administrative costs
(b) No impact on service delivery
(c) Not applicable
(d) Not applicable
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(a) The initiatives to achieve the three per cent efficiency dividend are:
(1)
Building Management and Works - Delay Filling of Vacant Positions:
Delaying the filling of vacant positions in Building Management and Works to reduce salary expenditure.
(2)
Building Management and Works - Reduce Consultancy Services:
Reduction of consultancy services expenditure by the Office of Strategic Projects.
(3)
Building Management and Works - Savings in Corporate Services Achieved as Part of the Transfer from Former Department of Housing and Works to the Department of Treasury and Finance:
Reduction in corporate services in Building Management and Works, following the transfer of the Works function of the Department of Housing and Works to the Department of Treasury and Finance in February 2009.
(4)
Building Management and Works - Reduce Supplies and Services, Including Human Resources and Consultancy Services:
Some improvements to operational systems to be put on hold, and the use of specialist consultancy services to be limited.
(5)
Building Management and Works - Postpone Implementation of the Fremantle Prison Heritage Precinct Master Plan to Allow Original Schedule to be Met:
Slowing the implementation of the Fremantle Prison Heritage Precinct Master Plan. As the implementation of the Fremantle Prison Heritage Precinct Master Plan is ahead of schedule, slowing the completion of the remaining recommendations will return the program to its original timeframe.
(6)
Building Management and Works - Suspension of Work on '5 Star Plus Stage 2' Sustainability Plan, to be Replaced with a New, More Cost-Effective Sustainability Policy Framework:
Suspension of work on the sustainability initiative 5 Star Plus stage 2, including reduced advertising/publicity and removal of the need to run state-wide workshops to introduce the measures to industry.
(7)
CEIID Initiative - Cease Use of Consultants and Graduate Program:
Immediate cessation of the use of consultants on Centre for Excellence and Innovation in Infrastructure Delivery (CEIID) reform projects as well as cessation of the CEIID graduate program. Consultants were previously used to support project teams and undertake research of best practice. The graduate program was intended to foster greater mobility between CEIID agencies with the potential for better matching resources to projects, and the development of a career path for business graduates.
(8)
Gateway Initiative - Reduction in Reliance on External Resources:
Reduction in the reliance on external (private sector) resources to conduct Gateway reviews and slow the growth of the Gateway Unit in Government Procurement.
(9)
ICT and Strategic Procurement Sourcing - Reduction in Use of Consultants:
Reduction in the reliance on the use of private sector consultants in meeting agency specific ICT contracting demands, and reduction in resources working on Common Use Arrangements.
(10)
Procurement - Reduction in BusinessDevelopment, Reporting and Analysis:
Reduction in the resources available for procurement business development, reporting and analysis and the management and promotion of Common Use Arrangements.
(11)
Procurement - FTE Savings Achieved through Natural Attrition and Realignment of Duties:
Includes abolition of the Level 8 Procurement Policy Officer within Government Procurement's Executive. This position was dedicated to policy development and advice.
(12)
Shared Services - Reduction in Use of Consultants:
Reduction in expenditure on consultants at the Office of Shared Services.
(13)
Shared Services - Rationalisation of Staff while Maintaining Focus on Core Transactional Areas of Accounts and Payroll Processing:
Reduction in staff numbers at the Office of Shared Services by approximately six Full Time Equivalents (FTEs).
(14)
State Revenue - Rationalisation of Staff to Focus on Areas of Greatest Risk and Revenue Yield:
Reduction in staff numbers at the Office of State Revenue by approximately 35 Full Time Equivalents (FTEs) across the Compliance, Customer Service and Staff Training, and Debt Recovery areas.
(b) The Department has implemented the above initiatives and monitors financial and FTE impacts associated with these initiatives to ensure that the efficiencies are realised.
In several instances, new service approaches are planned, including the implementation of the Works Reform program that is delivering a range of initiatives covering all four of the Building Management and Works service categories.
These are outlined in the Works Reform BusinessSolutions Plan that was released in June 2009. The plan has 55 recommendations to reform the planning and project management for the design, construction, maintenance and leasing of Government non-residential buildings.
The Works Reform Plan aims to deliver $280 million in savings over the next four years (as outlined in section 12 of the Works Reform BusinessSolutions Plan).
In some areas of the Department, service reductions and a reconfiguration of service delivery has occurred including:
· the reduction in procurement reporting and publications analysis. This has been supplemented by working more closely with agencies to streamline their processes;
· scaling back Common Use Arrangements promotional activities and the discontinuation of the Treasurer's Awards;
· Common Use Arrangement renewal program has been extended over a longer period of time;
· Developed a user pays model to cover the costs for conducting Gateway reviews; and.
· Reductions in State Revenue services have had corresponding impacts in customer service levels, a reduction in audit coverage and increasing debt levels. This impact is being mitigated in part by undertaking business in different ways through more flexible deployment of available resources, a greater focus on self assessment, and revised risk management strategies. Notably, notwithstanding the reductions, customer service levels are still meeting the standards outlined in the Customer Charter.
(c) Nil
(d) Nil
Department of Commerce
(a) The Department has implemented the following savings measures:
Saving measure A - Departmental Overheads:
Reduction in departmental overheads for Office of Director General and Corporate Services, including communications, finance, administration, human resource management, information systems, and corporate information. Planned expanded expenditure on employment has been curtailed.
Saving measure B - Consumer Protection:
Reductions in staffing have occurred across the regulation of associations, finance and valuation, the register of encumbered vehicles, weights and measures, consumer protection community education and in business improvement functions. Additionally, there have been reductions in budget for non-salary costs such as legal services and publications.
Saving measure C - Science, Innovation and Business
:
A budget provision originally used to engage management support for indigenous community stores in remote communities, was identified as a saving as it had not operated for over 5 years. Efficiency savings were being achieved from that source without impacting on mainstream operations.
Saving measure D - WorkSafe:
A range of cost savings and efficiency measures have been implemented across WorkSafe division. Inspectorate services have been maintained.
Saving measure E - Labour Relations:
Savings in the Labour Relations Division have been achieved by delaying recruitment to fill selected vacancies by up to three months. There have been reductions in expenditure on stationery, consultants, travel, and training conferences and seminars.
b) No original services have been cut but delays in recruitment have required support from other services within each division.
c) See (a) and (b) above.
d) No new services have been provided by the department.
Department of Housing
a) Administrative savings through economies of scale are being achieved through the amalgamation of the administration of the multiple shared equity schemes into the Keystart Housing Scheme structure.
Administrative savings through some of the Country Housing functions being delivered through the Keystart structure.
Savings in the reduced use of consultants.
Reductions in travel expenses.
Restructure of management positions to reduce duplication in functions and improve operational efficiencies.
Reduced duplication of program management and administration costs for Community Housing Joint Ventures.
b) Keystart already provides shared equity schemes for the Department and in the case of Country Housing Authority provides housing loans in regional Western Australia. The transfer of the remaining schemes and functions provides greater economies of scale.
Cost savings achieved through improved efficiencies and reduction in duplication of program management and administration. Only essential use of travel and better use of alternative communication means such as the electronic media. Reduction in consultancy services through the better use of in house expertise.
c) Not applicable
d) Not applicable
Chemistry Centre
(a) There are two initiatives which ChemCentre has budgeted in order to meet the 3% efficiency:
(i) ChemCentre made savings against rent and received cash from fee for service work above budget. As a consequence Chemcentre had surplus cash above budget for the year ending 30 June 2009. The 3% efficiency saving on appropriations was paid for out this cash surplus.
(ii) For the year ending 30 June 2010 and the out years, Chemcentre is looking to replace contract IT with a person employed by ChemCentre on a three year contract. This is expected to save at least the 3% efficiency dividend requested by State Government.
(b) As the savings against appropriations in 2009 were taken out of unpaid rent and resulting cash surpluses, services were not affected by the 3% efficiency.
(a) In the out years efficiencies created through better use of resources will not affect services.
(c) N/A
(d) There were no new services provided by ChemCentre
Small Business Development Corporation
(a) The Small Business Development Corporation undertook a review of its services to identify areas where the three (3) per cent efficiency dividend could be achieved. This included not replacing redundant or one off programs, and through the deferral, or not proceeding with existing and/or planned minor programs.
(b) The programs and activities targeted to achieve the three (3) per cent efficiency dividend were those with the least impact on core services of the Corporation and as such, these services have not been met by other areas of the Corporation.
(c) The required efficiency has been achieved through a reduction in appropriation with minimal impact on the provision of services.
(d) The following new services have been provided as a result of the 2009-10 budget process:
·
Indigenous Small Business Development Program ($300 000 per annum)
As a result of the government's economic audit, a recurrent amount of $300 000 has been transferred to the Small Business Development Corporation from the Department of Commerce for the Aboriginal Economic Development Program. The funding will be used for programs in support of Indigenous enterprise throughout Western Australia. Given the early stage of the program, it is not possible to quantify the non monetary costs and benefits of the new service.
·
BizFit Small Business Resilience Program ($2m over 2 years)
$1m has been provided in each of 2009-10 and 2010-11 to deliver a business resilience program for Western Australian small businesses. BIZFit represents a key initiative to address this issue by providing hands on training, support and guidance to build business resilience, regardless of the prevailing economic conditions. The program will run for two years and is expected to impact over 2 500 small businesses located in remote, regional and metropolitan WA. Program partners include the Small Business Centre network; Regional Chambers of Commerce, Local Government Authorities and the Curtin Business School.
WA Industrial Relations Commission
(a) Reduction in Staffing and Administrative costs
(b) No impact on service delivery
(c) Not applicable
(d) Not applicable
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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