TASMANIA has far too many public servants than it needs, but like all government expenses, once you commit the budget to something it is almost impossible to take back.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The Hodgman government would be well advanced in the planning for the May 28 state budget. Unlike last year's budget that was savage on the public sector, this year's budget won't be so severe.
There are too many destroyed political careers of politicians attempting tough measures, to expect substantial cost cutting beyond the first year of any government.
Even when the government tried to avoid job losses with a pay freeze, unions reverted to type and the Legislative Council rejected the freeze. More job losses resulted. The federal government has one public servant for every 91 Australians. Tasmania has one for every 21.
The wages bill and other employee entitlements totals $2.4 billion or almost half of total state expenditure before a cent is spent on actual public services.
Employee numbers grew by 25 per cent between year 2000 and 2011 while the wages bill and associated costs such as superannuation grew by 80 per cent by 2013-14.
This explosion in employment costs coincided with the golden era of growing GST receipts. The state government splurged on its workforce, simply because it could.
Then came the global financial crisis in 2009, bringing the golden era to a screaming halt. Tasmania became stuck with a public sector it couldn't afford.
The extraordinary defeat of the LNP government in Queensland, after it slashed about 14,000 public sector jobs and tried to sell energy assets, has spooked other governments and set back the pace of reform. The Abbott government, for all its shortcomings, tried to contain budget growth last year and is still paying a political price.
Expect a comparatively mild state budget in May, as the pace of much needed reform is quietly buck-passed to future generations.