Efficiency dividend: Difference between revisions
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== Controversy == |
== Controversy == |
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Proponents of the efficiency dividend argue that it improves the cost effectiveness of the pubic sector, allows managerial flexibility in the allocation of resources, and is a good way to generate savings in the cost of public sector administration.<ref>{{cite web|title=REPORT 413: The Efficiency Dividend: Size does matter|url=http://www.aph.gov.au/parliamentary_business/committees/house_of_representatives_committees?url=jcpaa/efficdiv/report.htm|website=www.aph.gov.au|publisher=Commonwealth of Australia|accessdate=5 January 2015}}</ref> |
Proponents of the efficiency dividend argue that it improves the cost effectiveness of the pubic sector, allows managerial flexibility in the allocation of resources, and is a good way to generate savings in the cost of public sector administration.<ref>{{cite web|title=REPORT 413: The Efficiency Dividend: Size does matter|url=http://www.aph.gov.au/parliamentary_business/committees/house_of_representatives_committees?url=jcpaa/efficdiv/report.htm|website=www.aph.gov.au|publisher=Commonwealth of Australia|accessdate=5 January 2015}}</ref> |
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Critics have described the efficiency dividend as a blunt instrument,<ref>{{cite news|last1=Stone|first1=Christopher|title=In government, small isn't always efficient|url=http://www.canberratimes.com.au/national/public-service/in-government-small-isnt-always-efficient-20140630-3b1qq.html|accessdate=5 January 2015|work=The Canberra Times|publisher=Fairfax Media|date= |
Critics have described the efficiency dividend as a blunt instrument,<ref>{{cite news|last1=Stone|first1=Christopher|title=In government, small isn't always efficient|url=http://www.canberratimes.com.au/national/public-service/in-government-small-isnt-always-efficient-20140630-3b1qq.html|accessdate=5 January 2015|work=The Canberra Times|publisher=Fairfax Media|date=1 July 2014}}</ref> a false economy,<ref>{{cite news|last1=Hutchens|first1=Gareth|title=Why this obsession with cutting public service jobs?|url=http://www.canberratimes.com.au/business/why-this-obsession-with-cutting-public-service-jobs-20150104-12h1nj.html|accessdate=5 January 2015|work=The Canberra Times|publisher=Fairfax Media|date=2 January 2015}}</ref> and lazy budgeting. <ref>{{cite web|last1=J|first1=Samuel|title=The Government’s efficiency dividend|url=http://catallaxyfiles.com/2011/12/16/the-governments-efficiency-dividend/|website=catallaxyfiles.com|accessdate=5 January 2015}}</ref> Smaller agencies have also highlighted the difficulty in finding such savings.<ref>{{cite web|title=Australian Public Service Commission Submission to the Joint Committee of Public Accounts and Audit: Inquiry into the effects of the ongoing efficiency dividend on smaller public sector agencies|url=http://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=/jcpaa/efficdiv/subs/sub54-2.pdf|website=www.aph.gov.au|accessdate=7 January 2015}}</ref> |
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==References== |
==References== |
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Revision as of 07:18, 7 January 2015
An efficiency dividend is an annual reduction in resources available to an organization.[1] It is usually applied as a percentage of operational (running) costs.
It has been used by the Australian Government on Australian Public Service departments and agencies since 1987. Some departments and agencies have been exempted.[2]
History
A 1.25% efficiency dividend was introduced by the Bob Hawke Government in 1987-88. It was reduced to 1% from 1994-95 to 2004-2005 then increased to 1.25% from 2005-06. For 2008-09 a one-off 2% efficiency dividend on top of the ongoing efficiency dividend was applied. In 2011-12 it was 1.5% and in 2012-13 another extra one-off 2.5% was applied.[3]
Controversy
Proponents of the efficiency dividend argue that it improves the cost effectiveness of the pubic sector, allows managerial flexibility in the allocation of resources, and is a good way to generate savings in the cost of public sector administration.[4] Critics have described the efficiency dividend as a blunt instrument,[5] a false economy,[6] and lazy budgeting. [7] Smaller agencies have also highlighted the difficulty in finding such savings.[8]
References
- ^ "efficiency dividend". www.businessdictionary.com. WebFinance Inc. Retrieved 5 January 2015.
- ^ "Agencies exempt from the boosted efficiency dividend". The Canberra Times. Fairfax Media. 29 November 2011. Retrieved 5 January 2015.
- ^ Horne, Nicholas. "The Commonwealth efficiency dividend: an overview". www.aph.gov.au. Retrieved 5 January 2015.
- ^ "REPORT 413: The Efficiency Dividend: Size does matter". www.aph.gov.au. Commonwealth of Australia. Retrieved 5 January 2015.
- ^ Stone, Christopher (1 July 2014). "In government, small isn't always efficient". The Canberra Times. Fairfax Media. Retrieved 5 January 2015.
- ^ Hutchens, Gareth (2 January 2015). "Why this obsession with cutting public service jobs?". The Canberra Times. Fairfax Media. Retrieved 5 January 2015.
- ^ J, Samuel. "The Government's efficiency dividend". catallaxyfiles.com. Retrieved 5 January 2015.
- ^ "Australian Public Service Commission Submission to the Joint Committee of Public Accounts and Audit: Inquiry into the effects of the ongoing efficiency dividend on smaller public sector agencies" (PDF). www.aph.gov.au. Retrieved 7 January 2015.