On 20 April, 1999 the Premier issued Memorandum 99-10 which announced a suspension of advertising and filling vacancies throughout all Budget Dependent General Government Sector Agencies. Premier's Department Circular 99-23 was subsequently issued which dealt with exemptions from these arrangements.

The 1999-2000 Budget was handed down on 22 June, 1999. The Cabinet Standing Committee on the Budget ('Budget Committee') has approved the following arrangements.

Key Features:

• All budget dependent agencies with identified savings initiatives in the 1999-2000 Budget are required to develop Savings Implementation Plans (see attached guide for format).
• All such agencies are to provide monthly reports to Premier's Department and Treasury on progress with the Savings Implementation Plan. Note - the Treasury will co-ordinate this reporting process. Reports should be forwarded to the relevant Financial Analyst in Treasury by the 14th day of each month until further notice.
• All agencies are required to redeploy existing staff to fill vacant positions, either from within their own agency, or from other agencies by using the services of the Workforce Management Centre.
• No position is to be advertised without prior reference to the Workforce Management Centre.

Effect on Recruitment Restrictions:
The freeze will be progressively lifted from budget dependent agencies once they are able to demonstrate achievement of their budget targets to the satisfaction of Budget Committee (as set out in budget allocation letters to CEOs from the Treasury and any other subsequent changes approved by Budget Committee since then).

This will be done by agencies either:

• providing a satisfactory Savings Implementation Plan and adhering to targets set out in the Plan; or
• for those agencies not required to develop Savings Implementation Plans, demonstrating adherence to their budget targets.

In the interim period, budget dependent agencies may continue to apply for essential exemptions that fall outside the stated terms of Memorandum 99-10 and Circular 99-23. I will consider these on a case by case basis.

Budget dependent agencies may elect to leave the staff freeze in place as part of broader budget management strategies.

Related Issue:
The Budget Committee has raised the need for agencies to delete unfunded vacant positions from their establishment.

Agencies are required to regularly review the need for unfunded vacant positions and to abolish those that are found to be unnecessary for service delivery purposes.

Enquiries:
Enquiries on the development and reporting arrangements for Savings Implementation Plans should be referred to the agency's Financial Analyst in the Treasury.

Enquiries on exemptions should be referred to the Strategic Policy and Reform Division, Public Sector Management Office on 9228 4381.

Enquiries on redeployment matters should be referred to the Workforce Management Centre on 9228 3740.

C. Gellatly
Director-General

GUIDE TO SAVINGS IMPLEMENTATION PLANS

Development of the Savings Implementation Plan
Agencies are required to develop Savings Implementation Plans to be endorsed by Treasury, Premier's Department and Cabinet Office.

Inclusions in Savings Implementation Plans
Savings Implementation Plans are to include the following:

• Description of the savings measure
• Action/steps that the Agency will take to implement the measure, expected outcomes, associated milestones/ deadlines, and underlying assumptions. These will include:

(a) Managing staff reductions:

• Relative contribution of natural attrition, redeployment, voluntary redundancies etc.
• Identification of excess staff, expected numbers.
• Utilisation of accrued leave, expected outcome. 

(b) Consultation/joint action with other agencies:

• Agencies involved.
• Process for consultation, expected outcome.

(c) Other specific actions such as:

• re-engineering/ restructuring of functions,
• discussions with stakeholders.
• relocation of staff etc.

(d) A time profile of the savings initiatives.
(e) Monthly reporting to Premier's Department and Treasury on progress.

Schedule 1: Planned Timing of Agency Savings Measures

Schedule 2: Monthly Progress Report

_________________________________________

Superseded by M2007-10