Budget Review 2012–13 Index

Marty Harris

For the second year in a row the Government announced that there will be a reduction in the number of civilians employed by the Department of Defence. In the 2011–12 Budget, the Government stated that  1000 civilian employees ‘will not be required [in the Department of Defence] as a result of the introduction of greater efficiencies’.[1] This did not mean that 1000 positions would be ‘cut’ at the Department of Defence; rather, this was a reduction in expected, or future, positions.[2] Last year’s measure concerning civilian employees was expected to save the Government ‘$300 million or more over a ... three to four year period’.[3]

In 2012–13 and over the Forward Estimates, however, there will be net reductions in the number of civilian employees at Defence.  By 30 June 2014, the Department of Defence will have just over 1000 fewer civilian staff than it does now, and there will be a total reduction of 1313 civilian positions over the Forward Estimates. As the table below indicates, the largest reduction in employees will be in 2012–13.

Table 1: Anticipated number of civilian employees (including contractors), Department of Defence, 2011–12 to 2015–16[4]

	2011–12	2012–13	2013–14	2014–15	2015–16
Civilian workforce	22 355	21 731	21 347	21 205	21 042
Change (year on year)	-	-624	-384	-142	-163

According to the Minister for Defence, this measure will save the Government $360 million over the Forward Estimates.[5] In terms of how the reduction in employee numbers will be achieved, the Budget Papers note that:

This reduction has initially been allocated as a proportional reduction of 5 per cent across each Group, pending a more comprehensive review of the requirements across Groups in the new financial year. The reductions will be achieved primarily through a combination of natural attrition, tightening of recruitment practices and other measures.[6]

Budget Strategy and Outlook: Budget Paper No. 1: 2012-13 indicates that in the first year most of the reductions will be in the Defence Materiel Organisation—about 70 per cent (432 out of 624) of the staff reductions in 2012–13.[7] This may be linked to the number of procurement projects deferred beyond the end of the 2012–13 financial year.

It is also interesting to note that of the expected reductions in the Defence civilian workforce in 2012–13, not one will be from among the Senior Executive Service.[8]

Conversely, the number of Australian Defence Force personnel is expected to grow by just under 3000 over the Forward Estimates period, from an estimated 79 132 in 2011–12 to 82 013 in 2015–16.[9] This reflects the statement before the Budget by the Minister for Defence that in the 2012–13 Budget there would be ‘no adverse impact on the number of [Australian Defence Force] members on the military side’.[10] Some commentators argue though that reductions in Defence civilian employees can have a flow-on effect on the military. For example, Brendan Nicholson, writing in The Australian, states that:

Cuts to numbers of support staff will be greeted with dismay by uniformed and civilian staff alike.

An early victim could well be force morale. At a time when the ADF is struggling to retain personnel against strong competition from the mining industry in particular, any deterioration in conditions for soldiers, sailors and airmen and their families will not help.[11]

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