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Posted Wed May 13, 2009 8:00am AEST
Updated Wed May 13, 2009 8:06am AEST

The Community and Public Sector Union has welcomed the Federal Government’s decision to remove the extra 2 per cent efficiency dividend imposed on the public sector.

The Government did not include the additional dividend in last night’s Budget. Government departments will now have to reduce their running costs by 1.25 per cent rather than 3.25 per cent over the next financial year.

CPSU national secretary Stephen Jones says while the union would like to see the efficiency dividend removed altogether, it is a welcome first step.

“It’s a welcome surprise, we’ve been campaigning hard in the community over the last nine months to have that special efficiency dividend knocked off,” he said.

“That’s a good start but there’s more work to be done to ensure that this blunt instrument which is a tax on jobs and a tax on services is removed from the Budget in future years.”

Mr Jones says on the jobs front, the Budget has delivered mixed results.

He says the Government has created around 3,200 real jobs.

“Unfortunately at the same time it’s axed around 1,700 existing positions, that to us doesn’t make sense – you don’t create jobs by cutting them,” he said.

“So on a critical test, the Government gets about five out of 10 on public sector jobs.”

http://www.abc.net.au/news/stories/2009/05/13/2568745.htm?section=justin

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