Standing up for Canberra

Efficiency dividend

The Gillard Government today released the ‘Review of the Measures of Agency Efficiency report’ and announced a temporary quarter per cent increase in the efficiency dividend from 1.25 per cent to 1.5 per cent for two years.

Under this measure, the efficiency dividend will rise from 1.25 per cent to 1.5 per cent in 2011-12 and 2012-13, and return to 1.25 per cent for 2013-14 and 2014-15.

Federal Labor representatives for the ACT, Senator Kate Lundy, Dr Andrew Leigh and Gai Brodtmann, welcomed the release of the Review which was commissioned following Labor’s comprehensive report into government administration.

The central recommendation of the Review - to apply the efficiency dividend at portfolio level – will be adopted by the Government.

The Gillard government is committed to a strong public sector and protecting jobs in the Australian Capital Territory.

Reflecting the Government’s commitment to protecting jobs the efficiencies should be achieved without resorting to job cuts and will apply at portfolio level.

Today’s announcement to apply the efficiency dividend at a portfolio level protects smaller agencies.

This is in contrast to the Coalition who have a plan to increase the efficiency dividend to two per cent and cut 12,000 public service jobs.

While Senator Humphries has been scaremongering in the community, he supports Abbott’s plan in Parliament to increase the efficiency dividend to two per cent and gut the public service.

The Coalition have been talking up cuts but their party position is clear and it’s simply empty rhetoric.

The ACT economy is the best performing economy in the country and we will continue to work with ACT Government to deliver for the people in Canberra.