MID-YEAR BUDGET REVIEW

191 The Hon. R.I. LUCAS (18 February 2009). Can the Deputy Premier advise the explanation for operating cost expenditure reduction in 2011-12 being $131 million and yet ongoing savings will be a lower level of 'in excess of $100 million per annum' (refer to page 6 of the Mid-Year Budget Review)?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business): The Treasurer has provided the following information:

The reduction in operating expenditure of $131 million up to 2011-12 refers to the total estimated reduction over the 3 year period 2009-10, 2010-11 and 2011-12. It includes the reduction in FTEs in each of those years to achieve the budgeted 1200, 200 and 200 FTE reductions respectively and also takes into account the cost of a Targeted Voluntary Separation Program—which will be available for a short period of time during 2009-10.

The ongoing savings in excess of $100 million refers to the annual savings from 2012-13 once the total reduction of 1600 FTEs has been fully implemented.