Wielding the axe  … Premier Barry O’Farrell / Pic: Nic Gibson Source: The Daily Telegraph

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THOUSANDS of public servants face the axe in a slash-and-burn state budget made even tighter by the global share meltdown.

Barry O’Farrell’s money men Mike Baird and Greg Pearce flagged cuts of up to 25 per cent in the Coalition government’s first budget on September 6, as they grapple with drastic revenue reductions since global stocks plummeted.

But an internal war has broken out, with the National Party fighting to stop cuts in Deputy Premier Andrew Stoner’s 8000-strong Department of Trade and Investment.

It is understood Primary Industries is facing cuts to its budget of up to 25 per cent, with several grants programs to be axed.

One in three jobs in NSW Health’s head office – up to 400 positions – are on the chopping block in a $30 million budget pruning, The Daily Telegraph can reveal.

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Related Coverage

• Baird’s first budget will be tough The Australian, 29 Jul 2011
• Baird warns NSW may resort to borrowing The Daily Telegraph, 4 Jul 2011
• O’Farrell falls back into ‘black hole’ The Australian, 6 May 2011
• Budget error: O’Farrell defiant The Australian, 28 Apr 2011
• Sinking the state’s costly car fleet The Daily Telegraph, 27 Apr 2011

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Elements of the Department of Community Services budget will be outsourced at a lower cost to the private sector and many other public service jobs are set to be contracted out.The only area to be spared the axe will be transport infrastructure, in a sign the government wants to send a message it is serious on transport.

Mr Baird would not comment on the cuts but has confirmed that property tax revenues, GST receipts and general tax receipts are being drastically revised downwards in the wake of the new global financial troubles.

Despite this, the government still intends to deliver surpluses but is having to slash and burn to do so.

“We are not going through all this pain for nothing,” one senior government source said.Another source said: “It’s bloody terrible. They’re taking a knife to everything.”

Mr Pearce is said to be the “main protagonist” in the expenditure review committee process, where he is taking a “take no prisoners” approach.

The cuts to the 320,000-strong public service come after Barry O’Farrell ended Labor’s no forced redundancies policy, likely to lead to union unrest.

Mr Baird has confirmed revenue in next month’s budget will be downgraded after the global economic events of the past fortnight.

“I’m not going to speculate on the budget but what we will do is deliver on our commitments which means more teachers, nurses and police,” Mr Baird said.

“I’m not going to speculate on the budget but what we will do is deliver on our commitments which means more teachers, nurses and police,” Mr Baird said.

Message from from me:
That’s bullshit Mike, plain and simple. Barry, you’ve gone too far. Your pressure on the Public Sector, and your removal of our rights to independent court rulings, will force Unions to cut services to fund pay rises. you don;t understand your own policy repercussions, and you don’t understand that the any alleged failings of the public service are the fault of the heads of Departments, not the workers. mind you, some consultation with us would have exposed this for you, but why bother consulting with those that have the experience that you and your cabinet clearly don’t.

See you both at the Kiama Community Cabinet meeting. We have some things to discuss……..