Govt cost-cutting behind schedule?

Press, 29 May 1982, Page 6

Govt cost-cutting behind schedule?

PA Wellington Some Government departments might not be able to meet the Government’s 3 per cent cost-cutting target until next year, or even the year after, said the Minister of . State Services (Mr Thomson), yesterday. With , a number of votes, such'as health and education, the;, cost-cutting exercises would have to be carried forward to the next financial year. Asked about a recent report that the Education Department had come up with proposed savings only equal to less than half of the 3 per cent sought, Mr Thomson said he could not confirm that report. The department might not necessarily be able to meet the 3 per cent target this year, particularly as it was a “short year," with the Gov-

ernment already two months into its current financial year. Another difficulty was that some decisions affecting the education budget had been taken before the beginning of the academic year and that these could not now be -reversed. ‘ Similar strictures applied in the health vote and in other Government departments. The main part of the 3 per cent exercise had been carried out by Cabinet's, committee on expenditure, although a number of reviews still had to be completed in time for the Budget. A number of reviews, would, however, take longer. It was inevitable that some, departments had put forward politically unaccepfable proposals. However, in his view, the probity of the

public service was of such a standard that, when instructed to give professional advice on how to make savings causing the least harm to services, he expected to get honest advice. He was not disappointed that too many of the measures put up by Government departments involved increased charges for services rather than savings bought about by achieving greater efficiency. “There are very many services the Government provides which should be paid for, and there is no justification for enterprises to be getting these services free from the State," Mr Thomson said.

He repeated his belief that there was no need for redundancies because of the annual attrition rate of 8000 in the 66,000-member public service.