More public servants might go private

Press, 26 February 1987, Page 15

More public servants might go private

PA Wellington More top public servants, particularly managers who are also qualified as economists or accountants, are likely to find new jobs in the more lucrative private sector as a result of the Government’s cutting their pay rises, say private sector employers. The manager of Wareham Associates N.Z., Ltd, Mr Tony Smith, said the Government’s intervention would be good news for his company as he expected more State servants would be keen to seek work in the private sector. He said he would expect a partly qualifed accountant working in management in a Government department to earn about $38,000 with no extra benefits. In the private sector, that person could expect

to earn the same salary, as well as benefits, such as a company car t worth about $BOOO a year, and, depending on the type of employer, cheap housing finance. Mr Smith said he could not estimate how many public servants might opt for the private sector as a result of the Government’s moves to limit salary rises for State employees whose wage increases were calculated by the Higher Salaries Commission. He said that in the last year to 18 months his company had found jobs for about 12 top public servants in the private sector. “That is a high number when you think that the number of people (in senior management jobs) in the public sector ... might be a couple of hundred at tops, and as-

suming other organisations of our type are doing much the same, as us,” Mr Smith said. He said that those likely to transfer to the private sector would not all be covered by the Higher Salaries Commission. Those on the lower scales, seeing the restrictions imposed on those working above them, would probably also want to opt out. He thought those most likely to make the switch would include qualified or partly qualified accountants or economists, processors and; to lesser degrees, specialist engineers and some scientists working for the Department of Scientific and Industrial Research. However another Wellington management consultancy, PA Management Consultants, did not foresee any exodus from the public to the private.