Managing big input cost pressures
Advice on State sector remuneration issues
The Treasury has advised Ministers on how to manage State sector wage demands in accordance with the Government Expectations for State Sector Wage Settlements. The Treasury works closely with SSC in the provision of this advice.
In the past year, all collective employment negotiations have met these expectations, so that:
- wage settlements for the State sector have been funded from within departmental baselines, and
- wage settlements generally are not in advance of private sector settlements.
The Treasury has also provided advice to Ministers on pressures anticipated for 2011/12 and beyond and a strategy for responding to these pressures, and advised on implications for changes in superannuation policy for the State as an employer.
- BASS programme: The Treasury completed the first annual benchmarking exercise for administrative and support services designed to increase transparency and scrutiny regarding the cost and quality of internal services. This work supported agencies in understanding leading practice, identifying opportunities for improvement and setting targets. This work also supported the establishment of a property centre of expertise in MSD to strengthen the quality of property management across government, and stakeholder support for the launch of cross-agency improvement programmes for HR and finance functions. BASS has also increased agency capability and appetite for better management information regarding service performance, including services to the public.
- Shared ICT initiatives: The Treasury has developed funding mechanisms for DIA's implementation of the IAAS (Infrastructure as a Service) shared ICT service to enable it to generate estimated savings of $50 million over the first five years. We also considered options for accelerating the pace of shared ICT initiatives that will generate significant savings across the State sector (funding sources for these are still being explored).
Other Treasury initiatives to manage costs
Implementation of the findings from the review of the compliance costs for Crown entities.
Provided advice to the Minister on progress in reducing debt owed to the Crown.
| Performance Dimensions for 2010/11 | Target | Performance for 2010/11 | ||||
|---|---|---|---|---|---|---|
| Vote analysis: Supporting the Government by pursuing policy priorities and fiscal policy objectives through the analysis and advice provided as part of the annual budget cycle. | Achieved. |
Achieved. The Treasury's advice across votes helped Ministers deliver the 2011 Budget consistent with their BPS. Our advice has helped Ministers improve Value for Money (VfM) and performance, both within key sectors and across the public sector. All statutory requirements of the Public Finance Act 1989 have been met. |
||||
| 2010 Actual $000 |
Policy Advice - State Sector Performance | 2011 Actual $000 |
2011 Main Estimates $000 |
2011 Supp. Estimates $000 |
|---|---|---|---|---|
| 12,065 | Expenses | 13,431 | 13,843 | 13,648 |
Funded by: |
||||
| 11,849 | Revenue Crown | 12,961 | 13,563 | 12,980 |
| 216 | Other revenue | 470 | 280 | 668 |
