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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2008-10-16 Daily Xml
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Question Time

SHARED SERVICES

Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (14:07): My question is to the Treasurer. Why has his shared services program failed to deliver the savings he promised? The Auditor-General has revealed that there will be a savings shortfall of $17 million this financial year and a shortfall of $103 million over three years.

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (14:08): This is hardly new news. I think that, at the time of the estimates committee—

Mrs Redmond interjecting:

The Hon. K.O. FOLEY: Sorry?

Mrs Redmond interjecting:

The Hon. K.O. FOLEY: How about you just listen to the answer and then make a judgment?

Members interjecting:

The SPEAKER: Order! The Treasurer has the call.

The Hon. K.O. FOLEY: Thank you, Mr Speaker. We made commentary at the time of the estimates committee that the shared services program will deliver substantial savings to the budget but that it was likely to take a longer period of time to bed those savings down and we would see some slippage in the time it would take to lock those savings down.

What we have already locked down is about $30 million a year, and there is a further $30 million plus we need to achieve. What we are doing is locking in a long-term permanent stream of savings efficiencies in perpetuity. I have said quite openly that if it takes a year or two longer to get it right, so be it. These are long-term savings.

So, when the leader makes some silly comment like we have blown $100 million, what does that mean? It means that we are not getting the savings as soon as we had hoped. They are savings, not costs. They are savings. I say again that the Leader of the Opposition fails to understand the basic concepts of public finance. These are savings, so if the savings take a little longer, they are—

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: We are talking about savings. We cannot win with this lot opposite; we either spend too much or we do not spend enough, or we do not spend money in the right places, like a $1.2 billion football stadium, or give teachers 6 or 7 per cent wage outcomes. As a government, we have had the courage to make cuts—something members opposite failed to do through their period in government.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: The member for Davenport seems to have been quite vocal over the past few sitting days—sort of 'Come back Iain' time.

Mr Williams: He has a better memory than you, Kev.

The Hon. K.O. FOLEY: He just can't count, though, can he? Good memory, can't count.

Members interjecting:

The SPEAKER: Order!

Mr Venning interjecting:

The Hon. K.O. FOLEY: Gee, I am the Deputy Premier and Treasurer. How long have you been in parliament, Ivan—and you are still on the back bench—

Members interjecting:

The Hon. K.O. FOLEY: And you will be what, 70 at the next election, Ivan?

Members interjecting:

The SPEAKER: Order! The Treasurer will get on with his answer.

The Hon. K.O. FOLEY: Notwithstanding the interjections, sir, I will.

The SPEAKER: Order!

The Hon. K.O. FOLEY: We have embarked upon a program of savings that will lock in the efficiencies that we need to lock in if we are to continue to find the money necessary to fund our health, education and law and order platforms. Shared services is a process that is undertaken by most major corporations. Most major corporations globally now have shared services.

Ms Chapman: The PSA say it's failed.

The Hon. K.O. FOLEY: Apparently, the PSA has said it's failed and somehow that is supposed to be a badge of honour or something; they are the authority. Since we came into office, the PSA has opposed every initiative of this government to save money, so that does not surprise me. BHP has a shared services facility here in Adelaide. It is a common business practice, and it should be common for government. It is not an easy reform. It is not without the potential for error but, in the long run, it is a very good efficiency saving, and sometimes governments have to be courageous and make hard decisions—something members opposite failed to do in eight years of government.

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