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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-10-13 Daily Xml
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SHARED SERVICES

Mr GRIFFITHS (Goyder—Deputy Leader of the Opposition) (15:15): My question is to the Treasurer. What will be the effect on the state's finances and retention of the AAA credit rating due to the inability of the government's shared services reform to deliver the targeted savings? The shared services reform savings task, as set in the 2006-07 financial year budget, was $310 million for the period to 2012-13. The Auditor-General's Report released today identifies a shortfall of $124.574 million on this target.

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (15:15): I thank the junior shadow minister for treasury and finance, or whatever his portfolio may be. I have to say that, as long as two or three mornings a week I am debating Rob Lucas on ABC Radio, and as long as Rob Lucas is two or three times a week attacking the state's finances on TV, I consider him the shadow treasurer. If the opposition leader wants to make some adjustments to her portfolio line-up, she may well do so but, as far as I am concerned, the only person who is confronted—

Mr WILLIAMS: I rise on a point of order. This diatribe from the Treasurer has no relevance at all to the question.

The SPEAKER: Yes; the Treasurer will answer the substance of the question.

The Hon. K.O. FOLEY: Thank you, sir; that is probably a fair point, but I thought I would get it out there anyway. I have been upfront as recently as only a few days ago. I am not sure whether that was the day that Rob Lucas was attacking me, or it might have been Jan McMahon from the Public Service Association, but I have said upfront that shared services savings have taken longer to achieve than I would have liked. I have never pulled away from that. I can say that I am very confident that shared services will be a substantial success and that the work done by Damian Bourke and his team I think is very good indeed.

This is a mammoth exercise to bring together all the payroll, all the HR, all the purchasing and myriad other functions, including IT, into one entity. It is involving substantial efficiencies, reforms and change management, and there are hundreds and hundreds of public servants now working within the Shared Services entity whom we can be very proud of, because their motivation and team spirit are outstanding.

The savings are taking longer to achieve than had been expected. I do not know where the junior shadow minister has been, but it was in the last budget. I made reference in the last budget that we were not achieving the savings as quickly as we would have liked, and I have adjusted the settings accordingly in the forward estimates. I have adjusted the forward estimates accordingly, and our AAA credit rating has been reaffirmed. As of today I have announced that our target of 1,200 FTE Public Service positions to be taken out of the Public Service is bang on track. If anything, it is ahead of time.

When it comes to savings, this government has a record like no other: 92 per cent of the Smith review savings outlined close to the 2006 election: sold, delivered, done—92 per cent! Some $960 million of savings in the first Labor budget: delivered. Some $500 to $600 million in the second budget: delivered. What I have said is that after the next budget we will have a substantial task.

What I have to say to members opposite is that they will have to do a little bit better than saying they will cut advertising. The member for Stuart has said they want that money used on country roads; then Steven Wade in another place, whose head bobs up occasionally, said that that money can be used to build a Magill centre. We now have the leaders opposite saying—

Mr GRIFFITHS: I rise on a point of order, Mr Speaker. The Treasurer is clearly debating this point. My question was specifically about the shared services and the savings target not being met.

The SPEAKER: Order! There is no point of order.

The Hon. K.O. FOLEY: I have made it very clear, as I have done in each budget and in each midyear review, as we adjust and update where those savings are leading and what we expect to get. I have not hidden it. If it has taken the junior shadow in the finance portfolio to get something out of the Auditor-General's report, he is months behind the eight ball. I do not particularly like Rob Lucas and I do not have a particularly high regard for his experience as treasurer, but I have to say—

Mr GRIFFITHS: I rise on a point of order, Mr Speaker. The Treasurer continues to debate this matter. My question was specific.

The SPEAKER: Order! The Deputy Premier has been answering the question on shared services.

The Hon. K.O. FOLEY: I conclude by simply saying—and I am one of generosity—to the junior deputy—whatever his position—talk to Rob Lucas, get some ideas from Rob Lucas and learn from the experience of Rob Lucas. You could not go far wrong if you did.

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