03 December 2004
Thousands of public service jobs in Scotland were in jeopardy this week after Finance Minister Tom McCabe released details of the Scottish Executive's long-awaited efficiency review aimed at saving £1.7bn over the next three years.
McCabe has set no targets for job reductions – even though his plans to redirect resources from backroom to frontline services are considerably more ambitious than originally planned.
After announcing details of the efficiency review, which plans year-on-year savings of up to £745m by 2007/08, McCabe said he believed the proper approach was not to set 'up-front arbitrary targets' for job cuts. The aim was to produce a streamlined government that employed fewer people who were not providing frontline services.
Although he didn't rule out job losses, the minister said there would be a presumption against compulsory redundancies. But he added: 'I don't think it would be believable in any sphere of life, whether in the public or private sectors, for someone to give an absolute commitment that at no time would there ever be compulsory redundancies.'
The Public and Commercial Services union called for urgent talks with McCabe. Scottish secretary Eddie Reilly said that while the union was prepared to co-operate on a genuine approach to efficiency, 'we need clear assurances from the minister that there will be no compulsory redundancies and that there will be no compulsory redeployment of civil servants'.
In June, ministers set a target to deliver recurring annual savings of £500m by 2007/08. However, the Executive's Spending Review document shows that the figure has risen to £745m and could increase further. When the savings planned for 2005/06 (£405m) and 2006/07 (£582m) are added, the total amounts to £1.73bn.
But Professor Arthur Midwinter, finance adviser to the Scottish Parliament, accused the Executive of double and treble counting and said it was misleading to present the figures in that way. He claimed the true figure was £745m plus £300m for releasing productive time – the more efficient use of staff – giving a total of £1.045bn.
He pointed out that while the target savings were more ambitious than originally planned, they were still below Whitehall's. 'Scotland is still some way short of catching up on Gershon,' he said.
First Minister Jack McConnell claimed earlier this year that Scotland would go further than Gershon. But McCabe said he was not interested in making 'beauty contest' comparisons between Scotland and England. He rejected the claim that there had been double or treble counting and insisted there would be a combined saving of £1.7bn.
PFdec2004
