Yesterday
we had the hype - today a bit more reality.
NSW:
Thousands of jobs face axe
TEN
thousand more jobs will be cut from the public service and speeding
fines will rise by 12.5 per cent to help drag the NSW budget back
into surplus from a forecast deficit of more than $800 million next
financial year
SMH,
8
June, 2012
The
announcements will feature in the O'Farrell government's second
budget on Tuesday, which is expected to reveal the forecast deficit
for 2012-13 is $826 million.
This
is largely due to a collapse in forecast GST payments from the
federal government of more than $5 billion since September.
The
Treasurer, Mike Baird, is expected to announce 10,000 public sector
jobs will be shed on top of the 5000 redundancies announced in
September.
But
while the earlier job cuts were pursued through voluntary
redundancies, that approach is not guaranteed this time.
Instead
the cuts, anticipated to save $2.2 billion over four years, will be
achieved by imposing a ''labour expense cap'' to target an annual 1.2
per cent reduction in labour costs across all government agencies.
The
government will recommit to exempting nurses, police and teachers in
schools, but not TAFE teachers, from the cuts.
It
will also give directors-general of departments the flexibility to
achieve the targets through measures such as job redesign or by
reviewing contractor levels.
The
increase in speeding fines is expected to reap the government $140
million over four years and follows the announcement last week by the
Roads Minister, Duncan Gay, of a sharp increase in fixed and mobile
speed cameras.
There
will also be a crackdown on public sector annual leave balances. The
government is expected to say that the interim commission of audit
conducted by the former Treasury official Kerry Schott revealed about
12 per cent of NSW public servants had more than 40 days' annual
leave owing.
The
announcement on Tuesday will require accrued annual leave to be cut
to 40 days by June 30 next year, 35 days by 2014 and 30 days by 2015.
It is forecast to save $220 million over four years.
The
measures, along with a forecast improvement in economic conditions,
will contribute to returning the budget to projected annual surpluses
of more than $600 million from 2013-14, rising to more than $1
billion in 2015-16.
Mr
Baird declined to comment on the detail of the budget but confirmed
the government would ''be taking a range of difficult and necessary
decisions in our budget on June 12 to restore the state's finances so
we can fund critical programs, services and infrastructure needs''.
But
the secretary of Unions NSW, Mark Lennon, said the extra cuts would
hit frontline services despite the government's promise that they
would be spared.
''These
cuts will drown nurses, police and other frontline public sector
workers in paperwork and stop them doing the jobs they were employed
to do - serving the community,'' Mr Lennon said.
''Telling
departments to find savings through reduction of labour costs will
demoralise the workforce through job cuts and the growth of casual
and labour-hire employment.''
Mr
Lennon said the latest economic data showed NSW was in the slow lane
of the two-speed economy. ''Cutting jobs and services will only make
that worse.''
Australia
- Company collapse rates ahead of this time last year
The
number of company collapses so far this financial year is up 13.6 per
cent on the previous one, and many companies are expected to remain
under pressure.
26
April, 2012
Accounting
firm Taylor Woodings, which specialises in company restructuring,
says that up to the end of April, company collapses totalled 9,074.
In
April 2012, 869 companies failed, up seven per cent on the number of
collapses in April 2011.
However,
the number of collapses was 14.3 per cent down on the 1,014 company
failures in March 2012.
Taylor
Woodings said its analysis of data from the Australian Securities and
Investments Commission (ASIC) showed that, generally, businesses
struggled during April, especially in the retail and construction
industries.
"The
fragile global financial markets and economic conditions in Europe,
coupled with low consumer confidence, will mean many Australian
industries will remain under pressure in the near future,"
Taylor Woodings said.
"The
European economic crisis will continue to have an impact on the
outlook for the Australian economy and company insolvency figures.
"As
a result, we expect insolvency figures to increase slightly in the
coming months."
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