Today the NSW Treasurer Eric Roozendaal delivered the November Mini Budget detailing the Government's response to the global financial crisis and plans to preserve the State's Triple A Credit Rating.

A full copy ofthe speech is available on the NSW Treasury Website (http://www.treasury.nsw.gov.au/?a=12713).

It is clear from the Treasury analysis that difficult measures are necessaryto preserve the Triple A rating whilst also protecting front line services.

The Treasurer has armounced:

• Savings totalling $3.3 billion over the next four years; and
• Revenue measures to raise $3.6 billion.

The $268 million surplus previously forecast has been revised to an expected deficit of $917 million this financial year.

With these measures it is expected the budget will return to a surplus of $138 million next year, rising to a surplus of $573 million in 2010-11 and $900 million in 2011-12.

The Government has reaffirmed $57 billion dollars in infrastructure investment and a commitment to protect front line services. It has also indicated its intent to reduce waste and duplication at all levels.

Part ofthis direction is that the leadership ofthe public sector, including the Cabinet, will also be tightening its belt. Already the Premier has taken decisions to reduce travel entitlements for both Members of Parliament and Ministers.

There is a clear obligation for CEOs is to demonstrate restraint and prudence. To this end the Mini budget confirms the following changes:

• a reduction of 20% ofthe Senior Executive Service by the January 2009;
• a freeze on filling or advertising non front line public sector jobs;
• changes to travel for staff who need to attend meetings interstate; and
• efficiency savings for agencies and consideration ofthe merging ofsome functions following reviews by Budget Committee.

The Government will be expecting and relying on the professionalism ofthe Public Sector to participate in the delivery ofthese changes.

In the broader context it would be ofno surprise that every Government in Australia is subject to genuine restraint in the current climate. The revision ofthe Commonwealth Budget down by $40 billion indicates the seriousness ofthe challenges currently being faced domestically and internationally.

John Lee
Director General

This Circular has notsuperseded anyother Memorandum or Circular