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Posted: 2014-12-13 05:33:50
Finance Minister Mathias Cormann: jobs would be lost "across the public service".

Finance Minister Mathias Cormann: jobs would be lost "across the public service". Photo: Christopher Pearce

More than ten agencies among 175 that are being targeted by the federal government to save $500 million over the budget forward estimates have already been scrapped, calling into question the extent of savings claimed by the Finance Minister.

Mathias Cormann said on Saturday that jobs would be lost "across the public service" as a result of the savings measures, which are expected to be announced in full on Monday as part of the Mid-Year Economic and Fiscal Outlook.

Senator Cormann refused to provide further detail ahead of the budget update about the agencies, committees and other bodies that would be scrapped, but he said News Corp Australia had published a "pretty comprehensive list" on Saturday.

Among the 175 government bodies identified on the hit list are four councils and committees established by the Council of Australian Governments, which were scrapped a year ago as part of a plan to reduce the number of councils from 22 to eight.

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This includes the Standing Council on School Education and Early Childhood, which was replaced with the Education Council.

The list also identifies the infrastructure coordinator as among the positions that will be scrapped. This position was abolished in September and replaced with a chief executive role as part of a restructure of government advisory body Infrastructure Australia.

"Having spent the past year re-announcing existing infrastructure projects and pretending they are new, they are now re-announcing old cuts," shadow infrastructure minister Anthony Albanese said.

The government expects to save a reported $539.5 million over four years as a result of the cuts, but it is unclear whether all of the savings are new.

Among the other agencies on the hit list which have already been scrapped are seven Innovation Australia initiatives, including three clean technology committees shut down in August. The Commercialisation Australia Board was also axed, in October, while the Innovation Grants Committee was scrapped more than a year ago in November last year.

The Manufacturing Leaders Group was scrapped in May, to outrage from the opposition.

Reports the government is also poised to shut down the Australian Government Solicitor and transfer some of its staff to the Attorney-General's Department, with the possibility of more work being outsourced to external law firms, have caused concerns in the legal community.

Sydney lawyer George Newhouse, best known for his human rights work, said the move was unlikely to result in budget savings and it could compromise the independence of government solicitors.

He said in his experience the AGS operated efficiently while some private firms "see the Commonwealth as a gravy train".

Mr Newhouse said the AGS appeared to be "relatively independent from the government but I do question whether that independence would be compromised if individual lawyers were paid from within the department".

Senator Cormann's office did not respond to requests for comment.

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