By Melanie Sjoberg
ADELAIDE — It seems clear that the state government is moving into election mode following the release of its "economic blueprint" on April 23.
The package is supposed to provide the means for "our state" to climb out of its crippling debt, particularly in the wake of the State Bank debacle. Economic forecasters are predicting that the debt could rise beyond $8 billion by the middle of the year. The projections in the budget demonstrate clearly that it is ordinary workers who are going to be forced to pay for this mess.
Three thousand public sector jobs will be slashed through what has been described as "voluntary separations" — showing that it doesn't require a Kennett Liberal government to attack workers.
The number of government departments will be cut from 30 to 12 as a result of amalgamations and eliminations. The merging of the E&WS (Engineering and Water Supply) and ETSA (Electricity Trust of SA) into a mega-department has already begun, but details of cost savings and job reductions are being kept hidden. E&WS chief executive Ted Phipps has been quoted in the Advertiser suggesting that job reductions could be as high as 4% per year. The combined departments currently employ 7400.
The federal government provided a package to help the state government out of the financial mess created by the State Bank fiasco. The first instalment of $263 million will be used to fund the pay-outs of the 3000 public servants. Not only have workers been forced to pay through increased taxes and charges, but now the federal government will also support its Labor ally through the payment of unemployment benefits to those losing their jobs.
In addition to the up-front elimination of jobs, government departments will also be forced to absorb expenditure flowing from wage rises and inflation in the 1993-94 financial year.
What this will mean in practice is a reluctance by departmental managers to recruit even where there are staff shortages. Gaps for leave may be unfilled, putting additional pressure on those workers left in the job. Letters to newspapers and radio talkback shows already feature significant numbers of people complaining about inadequate services from the public arena.
The long-term viability of the public sector will also be severely eroded by an "assets sale" to the tune of $2 billion. It includes the State Bank, land owned by the SA Urban Land Trust, grain bulk loading facilities, other dedicated facilities owned by Marine and Harbours and shopping centres owned by the SA Housing Trust.
On the other hand, massive incentives are being offered to business in the form of "enterprise zones" at Whyalla and the Multi-Function he plan will allow businesses investing in the area to have 10 years free from paying state taxes and charges, concessions on electricity and water rates and fast-tracked approval for projects.
The Public Service Association, teachers and nurses' unions have vowed to fight these cuts.