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- 7 June 2007
Shared Corporate Services Review
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Page: 980
The Hon. MARIE FICARRA: My question without notice is directed to the Minister for Roads, and Minister for Commerce. Given the Minister's announcement in this House last week that the Government's People First Information and Communications Technology Plan will result in cost savings, why is it still the case that the amount spent on shared corporate services is 4 per cent of budget, which is double the 2 per cent private sector equivalent? Does the Minister think these figures are acceptable? If not, when will he set a deadline for a complete review of shared corporate services, and what initiatives and targets will he put in place to address the Government's overspending in this area?
The Hon. John Hatzistergos: Point of order: The question, in part, seeks an opinion from the Minister and I ask you to rule it out of order.
The PRESIDENT: Order! That part of the question that seeks an opinion is out of order. However, the Minister may proceed to answer the remainder of the question provided he is generally relevant in doing so.
The Hon. ERIC ROOZENDAAL: I am aware of the report from which I suspect the Hon. Marie Ficarra got her information. I fully support its aim of achieving savings for the Government. The Government has introduced a shared corporate services strategy with the aim of achieving significant administrative efficiencies and cost reductions across government. I am advised that over two years the Government has saved $130 million in running our agencies, in backroom services like human resources, finance and information technology. These savings are being redirected into frontline services, directly benefiting the people of New South Wales. This is about reducing duplication between agencies and increasing efficiencies.
I am advised that the Government is well on track to saving a further $170 million over the next two years. The reform of shared services across government has already achieved major benefits. I cannot take credit for all of them; my predecessor, the Leader of the House can take credit for many of them. From 2004 to 2006 corporate services costs have fallen by around 10 per cent, or $130 million; staff numbers engaged in corporate service activities fell from 13,500 to 11,700; since the implementation of new whole-of-government contracts the number of corporate applications across the sector has fallen from more than 40 to 14; the number of corporate services clusters has fallen from more than 40 to 25; major reform programs are currently under way in all major agencies, such as Health, Education, Rail and Police; and new shared services providers have been created, with BusinessLink being brought within the Department of Commerce structure, which will drive future efficiencies.
These reforms are encouraging, but there is more to do. That is why the Government established a shared services senior officers working group to drive implementation of the strategy, including the development of an implementation plan. This work is ongoing.
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