❓ Question on public sector wage negotiation outcomes, with the Treasurer highlighting the government's success in restraining wage growth and comparing it unfavorably to the previous Labor government's record.
AnsweredQoN 771Legislative Assembly
QuestionView source ↗
PUBLIC SECTOR — WAGE NEGOTIATIONS
771. Mr J. NORBERGER to the Treasurer:
Before I ask my question, I acknowledge
the student leaders and teachers from Mullaloo Heights Primary School who have
joined me and are in the public gallery today.
Treasurer, I note the Liberal–National
government's success in driving efficiency across the public sector
while ensuring our public service employees continue to be among the best paid
in the country. Can the Treasurer please update the house on recent wage
negotiation outcomes?
771. Mr J. NORBERGER to the Treasurer:
Before I ask my question, I acknowledge
the student leaders and teachers from Mullaloo Heights Primary School who have
joined me and are in the public gallery today.
Treasurer, I note the Liberal–National
government's success in driving efficiency across the public sector
while ensuring our public service employees continue to be among the best paid
in the country. Can the Treasurer please update the house on recent wage
negotiation outcomes?
AnswerView source ↗
I
thank the member for the question. Yes, we have done a great deal to try to
rein in the growth of salaries and salary expenditure in the state. Members
will remember that the fiscal action plan put in place in, I think, 2013–14
pegged wage growth at the consumer price index rate. Although there were a lot
of doubters, it was achieved. In February this year, we announced that
the wages growth target was now 1.5 per cent; again, people doubted we would
achieve that. Yesterday we welcomed an in-principle agreement between the
Department of Health, the Australian Medical Association, the Australian
Nursing Federation and United Voice for a 1.5 per cent pay increase for
doctors, nurses and enrolled nurses. The agreement will relate to 16 000 registered
nurses, 2 700 enrolled nurses and 4 500 doctors. It follows successful
negotiation with the Health Services Union, which represents 16 000 employees
in our public health system, and 2 000 prison officers. The agreement covers a total
of 41 000 employees on the 1.5 per cent wages policy.
The fiscal action plan has
contributed significantly to restraining the growth in salaries. We know that
salaries make up the largest proportion of government expenditure—40 per
cent directly—and of course it relates to non‑government
organisations, for which salaries are pegged, to a large extent, to growth in
salaries. The agreement has allowed us to restrain the growth in salaries to
2.4 per cent over the forward estimates. I would really like to thank the
various unions involved for participating. It was a fair deal. They negotiated
hard on behalf of their members, and I would really like to thank them for
that. There were a lot of doubters, particularly on the other side of the
house.
We achieved the salary restraint in
two ways—in wages growth and, of course, in the number of full-time
employees. Since December 2012, full-time equivalent numbers in the public
sector have basically been stationary or slightly reduced. We have dramatically
altered the allocation of FTEs to frontline services away from the backroom
services—a major transformation of the public sector.
The Leader of the Opposition says he
wants to copy us. In fact, when the various media ask him how he will restrain
debt and deficit he says, ''I'm just going to have tight wages
policy.'' Let us look at what the Labor Party did. During the Labor's
Party period in government, average salary growth was 8.8 per cent a year.
Several members interjected.
Dr
M.D. NAHAN : During that period —
Several members interjected.
The
SPEAKER : I want you to address the question at hand.
Dr
M.D. NAHAN : Yes.
It was 8.8 per cent a year; in fact,
when we came into government it was growing at 12.4 per cent. They say —
Several members interjected.
The
SPEAKER : Member for Cannington, thank you. You can make a press statement
or do what you want, but do not interrupt here all the time. I call you to
order for the first time.
Dr
M.D. NAHAN : The Leader of the Opposition says, despite the record of the
Labor Party, that it wants to restrain wages growth, but I bring members back
to the big red book —
Point of Order
Mr
B.S. WYATT : Mr Speaker, you often call me to order when I take a point of
order when the Treasurer wanders off topic in respect of issues around spending—for
example, when I drew attention to the Treasurer's performance in the
first term of the Barnett government around wages versus its wages policy. In
light of the fact that the question was in respect of what the Liberal‑National
Parties' policy was, I ask if you can perhaps advise the house of the
relevance of what the Leader of the Opposition says around that.
The
SPEAKER : Member for Victoria Park, if we had to stop any comparisons on
both sides, we would be in very serious waters. I want a succinct answer.
Address the question at hand. Your point is taken, but there are a lot of
comparisons that happen on both sides.
Questions without Notice Resumed
Dr
M.D. NAHAN : I know the member who asked the question is dying to get this
answer. Both the shadow Treasurer and the Leader of the Opposition make great
statements that they are going to restrain growth and expenditure, despite
their poor record on wages.
Point of Order
Mr
B.S. WYATT : Perhaps the Treasurer could point out exactly what was fully
funded and fully costed in the 2013 election promises.
The
SPEAKER : I do not want to start calling you for spurious points of order.
Questions without Notice Resumed
Mr
P.B. Watson interjected.
The
SPEAKER : Thank you, member for Albany! I call you to order for the first
time. A quick answer through the Chair. We were doing pretty well until this.
Dr
M.D. NAHAN : The big red book goes to it. Clause 244 of the Labor policy on
public sector employment clearly states that WA Labor will —
Point of Order
Mr
B.S. WYATT : Perhaps the Treasurer could reflect on the performance of the
Liberal Party in respect of meeting its wages policy in the first term.
The
SPEAKER : Thank you. Member for Victoria Park, that is not a point of order.
I call you to order for the first time. Treasurer, I want you to address this
now quickly. We are just getting bogged down.
Questions without Notice Resumed
Dr
M.D. NAHAN : The Labor Party will immediately review the current government's
public sector wages policy and properly fund wage increases.
Point of Order
Mr
B.S. WYATT : Perhaps the Treasurer could point out why it is problematic to
properly fund wage growth in Western Australia.
The
SPEAKER : I call you to order for the second time, member for Victoria Park.
Questions without Notice Resumed
Dr
M.D. NAHAN : It will give public servants a one per cent increase in
superannuation. In other words, these guys have a bad record on restraining
wages growth.
The
SPEAKER : This is going to get out of hand. I want you now to answer the
question; otherwise, I am going to start calling you and I am going to sit you
down.
Dr
M.D. NAHAN : Contrary to the mob opposite, we have restrained growth in
wages. They are promising to copy us and they have no hope of ever doing so.
The SPEAKER : We were making very good progress until this question, so let us try
to make some good progress .
thank the member for the question. Yes, we have done a great deal to try to
rein in the growth of salaries and salary expenditure in the state. Members
will remember that the fiscal action plan put in place in, I think, 2013–14
pegged wage growth at the consumer price index rate. Although there were a lot
of doubters, it was achieved. In February this year, we announced that
the wages growth target was now 1.5 per cent; again, people doubted we would
achieve that. Yesterday we welcomed an in-principle agreement between the
Department of Health, the Australian Medical Association, the Australian
Nursing Federation and United Voice for a 1.5 per cent pay increase for
doctors, nurses and enrolled nurses. The agreement will relate to 16 000 registered
nurses, 2 700 enrolled nurses and 4 500 doctors. It follows successful
negotiation with the Health Services Union, which represents 16 000 employees
in our public health system, and 2 000 prison officers. The agreement covers a total
of 41 000 employees on the 1.5 per cent wages policy.
The fiscal action plan has
contributed significantly to restraining the growth in salaries. We know that
salaries make up the largest proportion of government expenditure—40 per
cent directly—and of course it relates to non‑government
organisations, for which salaries are pegged, to a large extent, to growth in
salaries. The agreement has allowed us to restrain the growth in salaries to
2.4 per cent over the forward estimates. I would really like to thank the
various unions involved for participating. It was a fair deal. They negotiated
hard on behalf of their members, and I would really like to thank them for
that. There were a lot of doubters, particularly on the other side of the
house.
We achieved the salary restraint in
two ways—in wages growth and, of course, in the number of full-time
employees. Since December 2012, full-time equivalent numbers in the public
sector have basically been stationary or slightly reduced. We have dramatically
altered the allocation of FTEs to frontline services away from the backroom
services—a major transformation of the public sector.
The Leader of the Opposition says he
wants to copy us. In fact, when the various media ask him how he will restrain
debt and deficit he says, ''I'm just going to have tight wages
policy.'' Let us look at what the Labor Party did. During the Labor's
Party period in government, average salary growth was 8.8 per cent a year.
Several members interjected.
Dr
M.D. NAHAN : During that period —
Several members interjected.
The
SPEAKER : I want you to address the question at hand.
Dr
M.D. NAHAN : Yes.
It was 8.8 per cent a year; in fact,
when we came into government it was growing at 12.4 per cent. They say —
Several members interjected.
The
SPEAKER : Member for Cannington, thank you. You can make a press statement
or do what you want, but do not interrupt here all the time. I call you to
order for the first time.
Dr
M.D. NAHAN : The Leader of the Opposition says, despite the record of the
Labor Party, that it wants to restrain wages growth, but I bring members back
to the big red book —
Point of Order
Mr
B.S. WYATT : Mr Speaker, you often call me to order when I take a point of
order when the Treasurer wanders off topic in respect of issues around spending—for
example, when I drew attention to the Treasurer's performance in the
first term of the Barnett government around wages versus its wages policy. In
light of the fact that the question was in respect of what the Liberal‑National
Parties' policy was, I ask if you can perhaps advise the house of the
relevance of what the Leader of the Opposition says around that.
The
SPEAKER : Member for Victoria Park, if we had to stop any comparisons on
both sides, we would be in very serious waters. I want a succinct answer.
Address the question at hand. Your point is taken, but there are a lot of
comparisons that happen on both sides.
Questions without Notice Resumed
Dr
M.D. NAHAN : I know the member who asked the question is dying to get this
answer. Both the shadow Treasurer and the Leader of the Opposition make great
statements that they are going to restrain growth and expenditure, despite
their poor record on wages.
Point of Order
Mr
B.S. WYATT : Perhaps the Treasurer could point out exactly what was fully
funded and fully costed in the 2013 election promises.
The
SPEAKER : I do not want to start calling you for spurious points of order.
Questions without Notice Resumed
Mr
P.B. Watson interjected.
The
SPEAKER : Thank you, member for Albany! I call you to order for the first
time. A quick answer through the Chair. We were doing pretty well until this.
Dr
M.D. NAHAN : The big red book goes to it. Clause 244 of the Labor policy on
public sector employment clearly states that WA Labor will —
Point of Order
Mr
B.S. WYATT : Perhaps the Treasurer could reflect on the performance of the
Liberal Party in respect of meeting its wages policy in the first term.
The
SPEAKER : Thank you. Member for Victoria Park, that is not a point of order.
I call you to order for the first time. Treasurer, I want you to address this
now quickly. We are just getting bogged down.
Questions without Notice Resumed
Dr
M.D. NAHAN : The Labor Party will immediately review the current government's
public sector wages policy and properly fund wage increases.
Point of Order
Mr
B.S. WYATT : Perhaps the Treasurer could point out why it is problematic to
properly fund wage growth in Western Australia.
The
SPEAKER : I call you to order for the second time, member for Victoria Park.
Questions without Notice Resumed
Dr
M.D. NAHAN : It will give public servants a one per cent increase in
superannuation. In other words, these guys have a bad record on restraining
wages growth.
The
SPEAKER : This is going to get out of hand. I want you now to answer the
question; otherwise, I am going to start calling you and I am going to sit you
down.
Dr
M.D. NAHAN : Contrary to the mob opposite, we have restrained growth in
wages. They are promising to copy us and they have no hope of ever doing so.
The SPEAKER : We were making very good progress until this question, so let us try
to make some good progress .
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