Caygill's warning on spending

Press, 24 June 1989, Page 1

Caygill's warning on spending

Political reporter Final decisions on Government spending priorities for this year’s Budget are completed, the Minister of Finance, Mr Caygill, said yesterday. In a statement criticising Public Service unions over their reaction to spending restraints, Mr Caygill sought to draw a distinction between the cuts announced in the March miniBudget and spending decisions for the main Budget. He warned the public to be sceptical about complaints against policies designed to “apply the same kind of budget planning disciplines that would be automatic in any other large-

scale operation.” “It seems that anyone can get an easy headline if they claim the Government is making cuts in police or health or any other Government service. “But that is not an honest representation of what is happening in the reform of the Public Service. “Departments were informed in March that they would not be compensated for GST increases or inflation. “That was an early indication to them of the financial environment in which departments would be operating this year,” said Mr Caygill. “It was not a statement of our

priorities,” he said. “Those decisions have only just been made and they will be announced in the Budget.” Government departments were being made to live within their budgets, in spite of a history of not having to do so. There used to be no incentive to examine departmental operations and see whether services could be more efficiently delivered. “I’m sure that this is possible,” said Mr Caygill. “Every review of our bureaucracy has concluded that there has been massive wastage and poor management practices.” He said it was not surprising

that public sector unions were trying to scare the public with stories of cuts. “They are in the business of protecting their members’ jobs. They use the public to put pressure on the Government.” Mr Caygill said it was objectionable that the police staff cuts and a normal five yearly redeployment exercise had become mixed up. He said there should have been no need for the police to announce redundancies when natural attrition over the next year would have decreased staff by more than 300. About 267 jobs were axed in announcements this week.