Mr. Wyatt questions the Treasurer about the cost and savings of a voluntary redundancy scheme for public sector employees, given the near expiration of the public service employee cap. The answer provides details on the scheme's cost and anticipated savings.

AnsweredQoN 1115Legislative Assembly
Asked
11 August 2009
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QuestionView source ↗

I refer to the Treasurer’s announcement that 500 public sector employees will be offered a voluntary redundancy, in an effort to maintain the number of public service employees under the State Government’s cap of 99,155 FTEs.
I note that the Under Treasurer revealed in Estimates that the public service employee cap terminates on 30 June 2009, and I ask:
(a) given that the total cost of the voluntary severance scheme is estimated to be approximately $48 million, and given that the cap on the number of public service employees has nearly expired, can the Treasurer please provide details of the total savings to the State?

AnswerView source ↗

Answered
10 September 2009
Response time
30 days
Public Service Commissioner advises:
The
Targeted Employment Separation Offer 2009
provides for voluntary separation packages to be offered for up to 500 surplus public sector employees during the 2009/10 financial year at an indicative cost of $48 million (including leave).
Voluntary separation payments approved under this targeted offer will lead to consequential savings for the balance of the 2009/10 financial year and subsequent out years being redirected to deliver on Government priorities.
As at 14 August 2009, 260 applications under the offer had been received. If all eligible employees were to take up their formal offers of severance, the indicative separation cost (including leave) would be $26.36 million. It is anticipated that the receipt of further requests will be forthcoming, adding to projected savings.
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