Premier & Cabinet

Type:
Premier's Memorandum
Identifier:
M1991-35
Status:
Archived

M1991-35 Implementation of Strategies Outlined In the Financial Statement of June, 1991

Detailed Outline

I am becoming increasingly concerned at the slow rate of progress by many agencies in implementing the targets for head office down-sizing, contracting out and inventory reduction outlined in my Financial Statement of June, 1991.

As you know, these initiatives are a key element in the Government's strategies for achieving budget expenditure reductions over the next three years and it is absolutely imperative that the projected savings are realised. It is critical to the budget outcome and maintenance of the State's credit rating that these measures should be promptly and effectively implemented.

To give you an idea of the potential for savings, the following points are drawn to your attention. A recent survey of some 24 Government agencies, and a survey of 9 leading private sector agencies revealed large disparities in staffing head office and corporate support functions. Whilst the typical range in the private sector was between 0.5% - 1.5%, in the public sector the range was between 5% and 25%.

Contracting out traditional in-house functions of public sector agencies has been shown to provide cost savings, on average, of 20. In some of the examples to date in the NSW public sector, the benefits have been double and treble over the traditional approaches. There is an enormous potential for improving our management of these areas. The same goes for inventory management, particularly in some of our larger agencies and services, which have traditionally held large stocks of spares and supplies.

I am now asking you to personally review the positions within your portfolio agencies and the actual progress which has been made and the plans for the ensuring 12 months. These matters will of course be discussed in detail in the performance review meetings between agency Heads and the central agencies

early next year and in the Ministerial Reviews. If you are not satisfied with the effort to date, I believe that it would be appropriate for you to set challenging targets for each agency to achieve and include such targets in the Ministerial/CEO performance agreements.

I look forward to your full support in this matter.

20 November 1991
Office of Public Management
Premier's Department

Nick Greiner MP

Overview

Compliance

Not Mandatory

AR Details

Date Issued
Nov 20, 1991
Review Date
Nov 20, 2001
Replaces
Replaced By

Contacts

Contact
Contact us
Phone
02 9228 5555
Publishing Entity
Department of Premier and Cabinet
Issuing Entity
Premier