Opposition questions the Treasurer's claim of record spending cuts, suggesting a significant portion relies on unrealized departmental efficiency dividends. The Treasurer defends the cuts as a 'priority dividend' achieved through rigorous agency reviews and accountability measures.

AnsweredQoN 373Legislative Assembly
Asked
18 September 2001
Member
Portfolio
Treasurer

QuestionView source ↗

BUDGET, SPENDING CUTS
I refer to the Treasurer’s budget speech, in which he stated - We have cut spending by $852 million - a record never before achieved. Will the Treasurer admit that nearly half of this supposed spending cut is a yet-to-be-achieved departmental efficiency dividend, and that such a record will never be achieved? Mr RIPPER

AnswerView source ↗

The Leader of the Opposition clearly has trouble understanding that a Labor Government can do what his Government could not do. It had an average annual growth rate in expenses of 6.5 per cent. That is why its budget got into trouble and ran operating deficits. This Government published a list of cuts in the budget papers. One of the big cuts is a priority dividend; not an efficiency dividend. Every agency appeared before the expenditure review committee on at least two occasions. Some agencies appeared more often. We gave each agency its forward estimates, savings targets and the money for the election commitments for which it is responsible. The agencies were asked to explain to the expenditure review committee what measures they will adopt to achieve those savings targets. On some occasions, the expenditure review committee did not agree with a measure because it was not in accordance with the values and policies of this Government or it was not robust and would not last through the financial year. There should be no misunderstanding. This is not a generalised wish list that might or might not happen. Agencies have been given budget targets. I have explained to the chief executive officers of those agencies that we will hold them accountable for reaching those targets. We expect them to perform in accordance with the budget, and they have discussed with the expenditure review committee the specific measures they will adopt.
Mr RIPPER replied: The Leader of the Opposition clearly has trouble understanding that a Labor Government can do what his Government could not do. It had an average annual growth rate in expenses of 6.5 per cent. That is why its budget got into trouble and ran operating deficits. This Government published a list of cuts in the budget papers. One of the big cuts is a priority dividend; not an efficiency dividend. Every agency appeared before the expenditure review committee on at least two occasions. Some agencies appeared more often. We gave each agency its forward estimates, savings targets and the money for the election commitments for which it is responsible. The agencies were asked to explain to the expenditure review committee what measures they will adopt to achieve those savings targets. On some occasions, the expenditure review committee did not agree with a measure because it was not in accordance with the values and policies of this Government or it was not robust and would not last through the financial year. There should be no misunderstanding. This is not a generalised wish list that might or might not happen. Agencies have been given budget targets. I have explained to the chief executive officers of those agencies that we will hold them accountable for reaching those targets. We expect them to perform in accordance with the budget, and they have discussed with the expenditure review committee the specific measures they will adopt.
The Leader of the Opposition clearly has trouble understanding that a Labor Government can do what his Government could not do. It had an average annual growth rate in expenses of 6.5 per cent. That is why its budget got into trouble and ran operating deficits. This Government published a list of cuts in the budget papers. One of the big cuts is a priority dividend; not an efficiency dividend. Every agency appeared before the expenditure review committee on at least two occasions. Some agencies appeared more often. We gave each agency its forward estimates, savings targets and the money for the election commitments for which it is responsible. The agencies were asked to explain to the expenditure review committee what measures they will adopt to achieve those savings targets. On some occasions, the expenditure review committee did not agree with a measure because it was not in accordance with the values and policies of this Government or it was not robust and would not last through the financial year. There should be no misunderstanding. This is not a generalised wish list that might or might not happen. Agencies have been given budget targets. I have explained to the chief executive officers of those agencies that we will hold them accountable for reaching those targets. We expect them to perform in accordance with the budget, and they have discussed with the expenditure review committee the specific measures they will adopt.
Every agency appeared before the expenditure review committee on at least two occasions. Some agencies appeared more often. We gave each agency its forward estimates, savings targets and the money for the election commitments for which it is responsible. The agencies were asked to explain to the expenditure review committee what measures they will adopt to achieve those savings targets. On some occasions, the expenditure review committee did not agree with a measure because it was not in accordance with the values and policies of this Government or it was not robust and would not last through the financial year. There should be no misunderstanding. This is not a generalised wish list that might or might not happen. Agencies have been given budget targets. I have explained to the chief executive officers of those agencies that we will hold them accountable for reaching those targets. We expect them to perform in accordance with the budget, and they have discussed with the expenditure review committee the specific measures they will adopt.

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