Government Agency that Assisted in Pandemic Response Receives Knife
Service NSW (New South Wales) will cut around 125 positions as part of downsizing after the conclusion of the COVID-19 pandemic.
The agency, which facilitates access to government services like license applications, birth registrations, and fine payments, nearly doubled its staff during the pandemic—from 2,860 employees to 4,950.
As a result, its expenses more than doubled, exceeding the approved budget by $179 million (US$120 million) in 2023.
A spokesperson for Customer Service Minister Jihad Dib stated that the current number of employees is unsustainable.
They mentioned, “Many of the programs developed in response to the pandemic and natural disasters no longer necessitate this intense crisis support.”
Customer transactions through Service NSW almost halved between 2021 and 2023, dropping from 293 million to 157 million.
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The spokesperson emphasized, “Considering the deficit inherited from the prior government, it’s crucial that we maintain fiscal responsibility with taxpayer funds.”
Contractors and temporary employees will be most affected by the cuts, along with reductions in senior executive positions.
During the last election campaign, the government pledged to reduce contractor numbers in the public sector by 25% and senior executives by 15%.
The cuts faced criticism from opposition customer service spokesman James Griffin, who highlighted the positive impact of Service NSW on residents.
Mr. Griffin remarked, “This is yet another consequence of Labor’s union wage agreements and budget mismanagement.”
“The opposition is deeply concerned about how this will affect the ongoing work in disaster-relief payments and fraud prevention,” he added.
The agency does not intend to decrease the number of its customer service centers and plans to inaugurate a new center in Tallawong, northwest Sydney, later this year.
Redundant employees will have access to the Workforce Mobility Program introduced in 2023, which assists employees in finding roles elsewhere in the public sector.
