A delicate balancing act will determine Government success in achieving public sector productivity gains following the announcement that the Government will reduce the size of the public sector through the abolishment and consolidation of agencies and a reduction of 16,500 public servants over three years.
While the downsizing is consistent with Government reform agenda’s around the globe, its success is dependent on developing new ways of delivering services that realise efficiencies.
“The Government needs to perform a balancing act to achieve productivity gains in the public sector. Ensuring cost reduction is actually realised, without eroding vital services will be integral to the success of the intended downsizing and changed service delivery models” said Scott Hartley, National Public Sector Industry Lead, Grant Thornton Australia.
“To ensure efficiencies are realised, Government needs to clearly understand the cost of current service provision and be certain that alternate delivery models can deliver required efficiencies at acceptable levels of quality. This will be challenging with proposed reductions in regulatory spend. Any changes to service delivery models need to be carefully considered and planned as part of a greater service strategy rather than a cost reduction,” said Mr Hartley.
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