Fraser axes 17,000 Public Service jobs

Press, 1 May 1981, Page 7

Fraser axes 17,000 Public Service jobs

NZPA Canberra Up to 17.000 Australian Federal public servants will lose their jobs over the next two years under sweeping cuts in the Federal bureaucracy.

The report of the Federal Government's review into Commonwealth functions, known as the “razor gang," cuts through most areas of the public service. Many important state functions will be offered to private enterprise and others transferred to the states.

The expected Budget saving from the cuts is in the order of $560 million at this stage. Government revenue from sales of assets and cuts in tax assistance to industry is expected to be in the order of $l3O million.

The staffing estimates show that the cuts in the Commonwealth’s activities announced will result in the reduction of between 10,000 and 11,000 employees. Further cuts of 2 per cent

over the next two years have been projected with an expected over-all reduction of between 16,000 and 17,000 employees.

Functions to be. offered to private enterprise include sections of Australia Post, the ordinance factory at Bendigo. Commonwealth Land, and the Housing Loans Insurance Corporation. A review of Telecom (the State telephone network) will be made to determine which of its sectors could more efficiently be carried out by private enterprise. The Prime Minister (Mr Malcolm Fraser) said in his speech to Parliament that this could include standards for interconnection equipment going to private enterprise.

Private enterprise will also benefit from a wide range of Government services to be contracted out in areas such as housing and construction, administrative services, and the Australian Mint.

The scope for private en-

terprise in the defence effort will be examined in a review of the Defence Department The private sector and the universities will be encouraged to perform a wider range of activities in defence, science, research, and development. The Australian Capita) Territory fares worst in the transfer to private enterprise with large Governmentowned shopping centres, sporting and cultural facilities, motor-vehicle testing, and residential and commercial land sales going to the private market.

The Prices Justification Tribunal has been scrapped.

Mr Fraser said that the tribunal had outlived its usefulness as a regulatory mechanism and was placing undue burden on industry. Another body is to be established to oversee petroleum pricing policies. The level of activity carried out by the Industries Assistance Commission will be reduced when the present tariff review is completed.