I have announced a $100m increase to the health budget, which guarantees the delivery of new health services to growth areas.

To fund this initiative, I have commissioned the Council on the Cost of Government and the Chief Executives to achieve additional savings targets for 1996-97 by reviewing expenditures across the board. This will involve:

• the Council working with the Department of Public Works and Services in seeking expenditure savings in:

- information technology and telecommunications

- property management

- Government purchasing;

• the Council working with the sub-committee of the Chief Executives Committee to effect greater application of service competition policy through the use of benchmarking and contracting out, where appropriate; and
• the Council exploring opportunities for further cost savings in the corporate services area.

The Council will also be pursuing its work on tracking cost trends in Government agencies to establish additional opportunities for efficiencies and improvements in service delivery.

The Council is to be provided ever), assistance in its work including the secondment of appropriately skilled and experienced staff to assist on specific projects relevant to their particular agency. This will be carried out in conjunction -with the Public Employment Office.

The Council's Chairman, Prof. Bob Walker. will be writing to individual agencies to further outline the Council's work program.

Issued by: Council on the Cost of Government
Contact: Stephen McDonald, General Manager