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Title : 300 public service job cuts planned in NT cost-cutting blitz
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300 public service job cuts planned in NT cost-cutting blitz

The Gunner Government has announced plans to cut 300 public service jobs as part of its latest attempt to address the Northern Territory's financial crisis.

Key point:

• The NT Labor Government says it plans to implement a staffing cap
• The move has been announced by Treasurer Nicole Manison as the NT Government tries to fix its dire fiscal situation
• The announcement comes on the same day as Opposition Leader Gary Higgins makes a failed attempt at passing a no-confidence motion in parliament

The Government made a similar claim last year when it pledged to freeze hiring, which would result in 250 job losses, but figures later showed the public service actually grew in the time since.

This time the Government pledged a "staffing cap" that would see the job numbers at 2018 levels — or 21,118 public servants.

The cuts will come from voluntary redundancies and contracts not being renewed.

Treasurer Nicole Manison conceded the past freeze did not produce results, but said this time the Government was serious.

"To be perfectly frank, [the freeze] simply was not achieving the results that we wanted, so we have put this cap in place," she said.

"This is a figure — agencies will not be able to go over that figure.

"Agencies will be expected to live within their means.

"Chief executives will be monitored monthly on their performance about how they do this."

Job cuts to 'save $30 million'

The announcement came as the Gunner Government was facing a no-confidence motion in Parliament brought on by the Opposition CLP, who accused them of mishandling the economy and mismanaging the Territory's finances —resulting in a "financial crisis".

Ms Manison said frontline services would not be affected by the 300 or so job losses — estimated to save the NT $30 million — as they would be enacted over the next 12 months.

Last year she expected $800 million in savings by 2021-22 would be achieved through a range of measures, including hiking licence and registration fees, a vacant property levy and the hiring freeze.

It was unclear whether that was still on track.

Figures released late last year showed the Government was borrowing $4 million a day to cover basic operating costs, with the debt predicted to skyrocket from $3 billion to $35 billion in 10 years.

Further cuts not ruled out

Ms Manison said she expected all departmental chief executives to ensure the public service job cap was working.

"We are drawing a very firm line in the sand to say that is the number that we expect across government agencies and there will be further savings that will come," she said.

"We still have more tough decisions that will be made."

Ms Manison did not rule out further cuts to the public service, but stressed that it would not be a "slash and burn" exercise.

'No confidence' motion fails

Opposition Leader Gary Higgins said he doubted the Gunner Government's ability to carry out the cap and cut the positions, given last year's failures.

"It's interesting [that] they announce [the cap] now after they've filled a lot of the executive positions they had in the chief ministers and business departments," he said.

"How often have they been meeting with their CEOs for two-and-a-half years and how across their portfolios have they been?"

The no-confidence motion was defeated on the floor of Parliament 15-8.

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