Efficiency Dividend is inefficient:
The Norfolk Island Government /Administration has toyed with the idea of using the
efficiency dividend approach to save public money. The Chief Minister in the 12th Assembly, Andre Nobbs, spoke of the application of the ED approach during the dying days of the 12th Assembly, presumably on the advice of the then, and current CEO, George Plant, but those words have not been uttered of late. Maybe just as well.
Danger of waste on the way to a surplus
A new paper from the Centre for Policy Development examines the flaws
caused by blanket budget cuts and puts forward alternatives.
"As anyone who has tried budgeting knows, there is a limit to the
effectiveness of most cost-cutting measures. People who buy expensive
take-away food for their work lunches will find it relatively easy to save
money by bringing food from home instead. However, those already taking
homemade sandwiches every day will struggle to reduce their spending
further and still provide nutritious lunches.
After 20 years of the Efficiency Dividend, the public service is now at
the 'vegemite sandwich' stage of budgeting. Spending has been cut back to
the point at which Departments now need to reduce core functions in order
to deliver ongoing savings."
CPD's latest paper 'Beyond the Blunt Instrument: the Efficiency Dividend and
its alternatives' by CPD Fellow Jennifer Doggett discusses the many
problems caused by the Efficiency Dividend and recommends alternative
measures "
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