The Western Australian Liberal government is moving to slash public services using a combination of "efficiency dividends" and performance reviews. The plans closely follow the policy wish list presented by the WA Chamber of Commerce and Industry (CCIWA) before the 2009 state election.
Premier Colin Barnett came to office in 2008 and imposed a drastic tightening of the previous Labor administration's "efficiency dividends", under which departmental budgets were reduced by between 1% and 2.5% every year. Barnett added another 3% cut.
The stated intention was to shrink public servant numbers by about 5000.
This is despite the fact that the public service in WA is the same size as it was 10 years ago, whereas the population has increased from 1.9 million in 1999 to 2.2 million in 2008.
Cuts in the health department go even further. Treasurer Troy Buswell insisted that the health department stay within budget even after revelations in December that the department was $200 million over budget.
The former director general of health Peter Flett said it would require 2000 health job losses to meet the treasurer's demand. Flett resigned on December 18 after being publicly rebuked by Buswell.
Before the last state election, a policy paper released by the CCIWA called for public servants' permanency to be ended and all workers put onto contracts. It also called for privatising as many services as possible through contracting out and so-called Public-Private Partnerships.
Barnett is a former CCIWA executive director.
The government has commissioned three reviews — dubbed the "three card trick" by WA unions — to implement these key demands of the CCIWA. The terms of reference for the reviews are clearly designed to target public servants.
The first is the review of the Public Sector Management Act, which recommended ending staff permanency. Instead, workers could be sacked with four weeks' notice and opportunities for "surplus" workers to redeploy within the public sector will disappear.
This change would come into effect if the Public Sector Reform Bill 2009 — due to go to its third reading in February — is passed. This would be the most radical change to the public service in more than 100 years.
Secondly, the Economic Audit Committee recommended transferring public servants between agencies and even out of the public sector. In the latter case, private organisations would be contracted to deliver public services.
This review was submitted just before Christmas, with 43 recommendations pushing neoliberal change. These include removing workers' right to redeployment if their position is abolished.
Thirdly, a review of the WA Industrial Relations Act aims to bring in "Work Choices style changes to WA workplaces", according to Unions WA.
There are moves to hold a public rally in February as part of a union campaign against these attacks on the public sector. Details have not yet been announced.