NSW Budget to downsize public sector

Police numbers will be boosted in critical regions. Photo / Getty Images

Up to 5000 New South Wales public servants will be offered voluntary redundancy but the state will get 550 police officers and 2475 new nurses over the next four years.

They were among the main talking points of yesterday's state Budget which aims to streamline state government services.

Treasurer Mike Baird said head office and back office positions in non-service delivery areas would be cut across the public sector.

Baird said NSW was adopting a similar approach to other states, and predicted staff reductions would occur through turnover and natural attrition.

"These measures will be delivered in accordance with our election commitments to deliver improved frontline services," he said later in his Budget speech.

The Government also estimates its 2.5 per cent cap to wages growth will save A$2 billion ($2.54 billion) over four years.

Public sector workers in NSW have received wage increases well above other employee groups, a Budget paper says. "Since 1997, public sector wages have increased by 21.9 per cent in real terms," it says.

"NSW public sector wage growth has exceeded the NSW private sector by 10.7 per cent and the public sector in the rest of Australia by 6.1 per cent."

Half of all NSW public sector wage agreements are due to expire this year, which means a new wage agreement is likely to affect 4000 bus drivers, 80,000 salaried public servants, 51,000 health employees and 66,000 TAFE (technical and further education) and school teachers.

The Government has also announced the closure of the Berrima, Parramatta and Kirkconnell correctional centres. The Treasury estimates 350 jobs will be cut in the Department of Corrective Services through voluntary redundancies.

Prisoners will be moved to other jails to "address this surplus capacity and align our state's prison system with community needs", it says in the Budget papers.

The plan to employ new police will cost A$214.4 million and increase the NSW Police Force's authorised strength to 16,356 officers.

"We will boost police numbers in critical regions neglected over the last 16 years by NSW Labor," Police Minister Mike Gallacher said.

One hundred and fifty new officers will be employed this 2011/12 financial year.

Health Minister Jillian Skinner said A$80 million will be spent employing 940 new nurses by June next year. The remaining new nurses will be employed over four years.

There are also plans to spend A$1 billion on capital works to expand and renovate the state's ageing hospitals, including Campbelltown, Dubbo, Port Macquarie and Wagga Wagga.

It's part of an overall A$17 billion health care budget that aims to deliver an extra 550 more hospital beds.

Other new measures announced or confirmed included A$3.8 million over two years to equip police with state-of-the-art bullet-proof vests.

The Government will also spend A$62 million continuing construction of new police stations and will spend A$69 million over four years upgrading and replacing existing stations.

Gallacher also announced a A$34.4 million boost to the Rural Fire Service's budget for hazard reduction programmes.

The State Emergency Service will get A$17.4 million to enhance its flood and storm rescue capability, and a further A$8 million will be spent upgrading Fire and Rescue crews' uniforms.

The Budget also addresses the worst road black spots and bottlenecks in NSW, including the Pacific Highway.

And more than A$600 million will go towards the planned Sydney-based North West and South West rail links.

A total of A$13.1 billion will be spent on transport and roads this financial year with A$7.7 billion to go towards operating and expanding public transport services and $5.4 billion for roads and maritime services.

More than A$1 billion will be spent on the Pacific Highway this year, with the Government pledging to match additional federal funding of A$468 million to 2013/14, when the Nation Building Programme expires.

- AAP