Govt sets sights on public service cuts

THOUSANDS of federal public servants face a bleak Christmas after government department chiefs were shown how to make 12,000 job cuts.

Treasurer Joe Hockey is unable to say exactly which departments would be hit, but the details will be revealed in the mid-year economic and fiscal outlook to be released in December.

The Australian Public Service Commission (APSC) on Friday released guidance for agencies in helping the government meet its target of 12,000 jobs cut by natural attrition.

Mr Hockey told a business forum in Sydney on Friday the government was going through each department "balance sheet by balance sheet" to find savings.

"Strong economic growth in partnership with more prudent and focused public sector spending will be the key to improving our standard of living," Mr Hockey said.

"It is our best chance of returning the budget to surplus and paying down our record debt."

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The APSC guidelines say agency heads will ensure that "existing non-ongoing employment arrangements cease at the end of their current term, and refrain from entering new arrangements".

A contract should only be extended if it is a job which involves a "critical business demand".

As of June 2012, there were 14,273 non-ongoing employees in the public service.

Most were women and the biggest users of the positions were the Australian Taxation Office, Department of Human Services and the Australian Electoral Commission.

The majority of these workers are APS 1 and 2 - the lowest pay position for a public servant - and one in five are aged under 25.

The commission says that, before any worker is recruited to the public service for any position, agencies should "undertake careful and objective analysis of the role and whether it actually needs to be filled".

One of the agencies to be hit is the CSIRO, where an estimated 1400 people are on casual or term arrangements.

Acting opposition leader Tanya Plibersek says Prime Minister Tony Abbott had pledged before the election not to touch health and medical research.

"The top quality international research that they (CSIRO) produce is threatened," she said.

"This is a contrast to what the prime minister said before the election."

Assistant Treasurer Arthur Sinodinos says the number of jobs to go at CSIRO is "a bit fluid" but he has been advised the figure is "about 500 or 600 non-ongoing positions".

"The CSIRO ... will ensure it is not compromising its core responsibilities and flagship programs," he said.

CSIRO Staff Association secretary Sam Popovski says the agency had already lost 200 positions earlier this year.

"Our smartphones are powered by wifi technology pioneered by CSIRO," he said.

"How can CSIRO develop the next generation of Australian innovation if their capacity to conduct research and development continues to be cut?"

Meanwhile, Mr Abbott announced the abolition of 12 non-statutory bodies and changes to nine others.

He said many had outlived their original purpose or weren't focused on the government's policy priorities.

"We certainly won't be stopping here," Mr Abbott said.

"What you see is a government that is taking significant early steps towards ... reducing the size of the bureaucracy."

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