The NSW Government’s current budget position means that agencies need to find a balance between ensuring that savings measures are identified, without impacting on the delivery of front line services.

Public sector agencies must exercise restraint in the advertising and filling of vacancies to ensure that we can deliver the required budget savings. Agencies should be reviewing all vacancies as they arise to identify and fill only critical positions.

To ensure that this occurs, effective from the date of this memorandum:

• External recruitment to all positions, other than front line service delivery positions, apprenticeships, traineeships and graduate positions is suspended. Agency Chief Executive Officers (CEOs) may approve exemptions to this requirement, provided that there is a sound business case for the recruitment action.
• Agency CEOs should be approving recruitment to all positions (including front line positions) at or above $95,000 (Clerk Grade 11 or equivalent).  It is expected that agencies will amend their delegations and approval processes to ensure that this occurs.
• Contractors and temporary employees (direct employment through s27 of the Public Sector Employment and Management Act 2002) are not to be used as a substitute for recruitment action. CEOs may approve exemptions to this requirement, provided that there is a sound business case for engaging contract or temporary staff (for example, external funding requirements).
• All agencies are encouraged to use excess staff to fill short term vacancies. The Public Sector Workforce Office can assist with this process.

Agencies also specifically need to review all communications and media positions. This includes positions in media, communications, community relations, corporate relations, corporate communications, corporate affairs, public relations and public affairs.

I have asked the Public Sector Workforce Office to monitor the advertising of all positions submitted to jobs.nsw.  I would generally expect to see a 20% reduction in advertising expenditure by the end of the first quarter of 2009.

These provisions will be reviewed in early 2009 in the lead up to the 2009/10 Budget.

This applies to all agencies and employees in the Government Service (Public Service Departments, Non-Public Service Divisions and Special Employment Divisions), the Teaching Service, NSW Police and the NSW Health Service. State Owned Corporations are encouraged to adopt provisions consistent with this memorandum.

The Treasurer will write separately to State Owned Corporations concerning adoption of the provisions in this memorandum.

Nathan Rees MP
Premier

This memorandum has not superseded any other memoranda.