There has been a huge blowout in the wages bill for Australian Governments over the past four years.
We have checked the statistics provided by the Australian Bureau of Statistics. They say that the total cash wages for Government employees in the 2010/11 financial year was around $123 billion. In 2007/08, the wages bill was around $100 billion. Government wages increased by 5.6% pa in that four year period.
In the same timeframe, the number of Government employees increased from 1.75 million to 1.9 million an increase of 2.1% per year.
This large growth in the Government wages bill is one of the main reasons for our economic deficit. If there are more public servants there will necessarily be an increased burden of regulation on private enterprise and the Government will be competing with our banks to raise debt funds to pay for the wages blowout.
State Governments are the big employers with large numbers of teachers, nurses and police. These frontline professionals are extremely important to our society and future economy.
Unfortunately, there is an excess of administrative staff and wasteful bureaucratic processes which get in the road of the frontline professionals and private business.
The Commonwealth Public Service and also the respective State Government Public Services need a good hair cut!
Andrew and Tony Lovett
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