You will recall that, at the Chief Executive Officers forum in September, the Premier announced that the Government was developing a number of strategies to support the achievement of the savings required to fund the productivity component of the current pay agreement. The strategies relate to a more centralised approach to shared corporate services, procurement and IT initiatives. Cabinet has given in principle support to the following overarching MOU savings strategy:

• Strengthening the reporting arrangements to Cabinet and the Budget Committee, and the establishment of a Special Taskforce to assist agencies identify and implement savings initiatives;
• Acceleration of corporate service reform by providing increased stimuli for agencies to co-operate in shared corporate service arrangements;
• Centralisation of Government procurement, where cost effective, and the establishment of a new Procurement Council which will be chaired by the Treasurer, to oversee the process; and
• Improving management and co-ordination of the development and implementation of information technology. The Government's E-Government Committee chaired by the Director-General of Premier's Department, with representatives of DITM, Treasury and other key agencies, is an integral aspect of this initiative.

As part of the measures to strengthen reporting arrangements, the Government has re-affirmed its commitment to achieving the six- percent productivity savings from all agencies. To assist agencies in identifying and implementing savings initiatives, a full-time task force, comprising representatives from Premier's Department, The Cabinet Office, Treasury, the Department of Public Works and Services and the Department of Information Technology and Management, has been established. The Taskforce is being chaired by Mr Ron Christie, and will provide its initial report to Budget Committee by April 2002.

The Taskforce will be located on Level 16, Governor Macquarie Tower, 1 Farrer Place Sydney, from 7 January 2002. The telephone number will be (02) 9228 3122 and fax (02) 9228 3105.

To ensure that the Taskforce has the most up-to-date information on progress within agencies, you are requested to complete the attached reporting schedule detailing progress as at 30 November 2001. This information must be returned to Cathryn Hellams in the Public Sector Management Office by Friday 18 January 2002. This return, together with information previously supplied by agencies will form the initial information base for the taskforce, and will provide the basis for the Taskforce's face-to-face discussions with agencies.

As with previous reports, you should include an update on the implementation of existing initiatives and information on any additional initiatives that you will be pursuing to improve workplace efficiency. It is essential that a return be provided by 18 January 2002 even if it is a nil return.

The strengthened reporting arrangements that have been approved by Cabinet require CEOs to report to their Minister on a quarterly basis regarding the achievement of the savings targets.

A Circular that provides advice about the particulars of the key elements, and the timetable relating to, the shared corporate services initiatives will be issued shortly. Separate Circulars providing details of the procurement and IT strategies will be issued once the detailed recommendations have been approved.

Any inquiries on this matter should be directed to Cathryn Hellams on (02) 9228 3531.

(signed)

C. Gellatly
Director-General

Date: 21 December 2001

PRODUCTIVITY SAVINGS REPORTING SCHEDULE -
Progress as at 30 November 2001