Gary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | Link to this | Hansard source

asked the Minister representing the Minister for Defence, Minister representing the Minister for Defence Science and Personnel and the Minister representing the Minister for Defence Materiel, upon notice, on 18 September 2012:

In regard to the 2012-13 financial year:

(1) What is the net financial effect on the department's budget of:

(a) the original 1.5 per cent efficiency dividend;

(b) the additional 2.5 per cent efficiency dividend; and

(c) other savings measures as introduced in the 2012-13 Budget papers?

(2) What measures or strategies are being considered to ensure continued operation within the budget and efficiency dividend targets of the department?

(3) What percentage of total expenditure is represented by staff costs?

(4) Is a net reduction in: (a) staff; and (b) consultants and/or contractors, expected for the financial year; if so, can a quantitative total for each reduction be provided?

(5) How many: (a) voluntary redundancies; and (b) involuntary redundancies, are expected to be executed?

(6) What is the current distribution of full-time equivalent staff across classification bands?

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The Minister for Defence has provided the following answer to the honourable senator's question:

(1) (a) As determined by the Department of Finance and Deregulation (DoDF) and shown in the Portfolio Budget Statements 2011-12, table 11, page 28, the temporary increase in the efficiency dividend from 1 to 1.5 per cent resulted in Defence handing back $30.4 million in the 2012-13 financial year.

(b) As determined by DoFD and shown in the Portfolio Additional Estimates Statements 2011-12, table 12, page 21, the one-off 2.5 per cent efficiency dividend resulted in Defence handing back $60.4 million in the 2012-13 financial year.

(c) Other savings measures introduced at the 2012-13 Budget are:

These measures are published in table 15, page 29 of the Portfolio Budget Statements 2012-13.

(2) The Secretary and CDF have instituted ongoing budget management discussions with all Group Heads and Service Chiefs to ensure:

(3) In the 2012-13 financial year, including Defence Operations, Employee expenses account for 42.9 per cent of the total Defence budget. Key 2012-13 Cash Budget Statistics are published on page 2 of the Portfolio Budget Statements 2012-13.

(4) (a) and (b) There is an estimated net increase of 19 in average staffing levels from the 2011-12 actual achievement to the 2012-13 Budget Estimate, broken down by ADF +642, partially offset by a decrease in APS staff of -623. In respect of contractors, there is an estimated increase of 24 from the 2011-12 actual achievement to the 2012-13 Budget Estimate. Defence does not track the number of consultants employed as these are hired based on contract value.

(5) (a) The Defence budget position requires a reduction to its APS workforce of 1,000 over the next two financial years. Defence is managing this reduction through natural attrition, close management of recruitment, reductions in non-ongoing employment and a targeted voluntary retrenchment (VR) program. Defence is reviewing work priorities to ensure it can meet the Government's requirements. It is unknown at this point in time how many VRs will be required to meet the reduction requirement.

The Strategic Reform Program will require a number of change management activities to enable the required saving to be achieved. As a result, some employees may be without an ongoing role in the new organisational structure. In these situations Defence's focus is to reassign employees. Where reassignment within Defence is unable to be achieved, consistent with the Defence enterprise agreement, a voluntary retrenchment package may be offered.

As at 24 September 2012, 229 VR packages have been offered and 109 accepted by Defence APS employees during financial year 2012-13.

(b) There will be no involuntary retrenchments (IR) as a result of the Defence Targeted VR Program.

Defence's priority is, where possible, to reassign employees to a role at their substantive level that is commensurate with the employee's skills and experience. If an employee cannot be reassigned to another position then the focus will be on redeployment training. In the unlikely event this is not successful the employee may be declared excess to Defence's requirements and a VR offer will be made.

If the employee declines the VR offer it may result in an involuntary retrenchment.

As at 24 September 2012 no involuntary retrenchments have occurred during financial year 2012-13.

(6)