THOUSANDS of public servants face the axe in a slash-and-burn state budget made even tighter by the global share meltdown.
Barry O'Farrell's money men Mike Baird and Greg Pearce flagged cuts of up to 25 per cent in the Coalition government's first budget on September 6, as they grapple with drastic revenue reductions since global stocks plummeted.
But an internal war has broken out, with the National Party fighting to stop cuts in Deputy Premier Andrew Stoner's 8000-strong Department of Trade and Investment.
It is understood Primary Industries is facing cuts to its budget of up to 25 per cent, with several grants programs to be axed.
One in three jobs in NSW Health's head office - up to 400 positions - are on the chopping block in a $30 million budget pruning, The Daily Telegraph can reveal.
Elements of the Department of Community Services budget will be outsourced at a lower cost to the private sector and many other public service jobs are set to be contracted out.The only area to be spared the axe will be transport infrastructure, in a sign the government wants to send a message it is serious on transport.
Mr Baird would not comment on the cuts but has confirmed that property tax revenues, GST receipts and general tax receipts are being drastically revised downwards in the wake of the new global financial troubles.
Despite this, the government still intends to deliver surpluses but is having to slash and burn to do so.....
NSW Premier Barry O'Farrell ... playing hardball with the federal government. Picture: Brad Hunter Source: The Australian
Increasing royalties would hurt the federal Budget because, under the super profits mining tax deal, any increase in state tax on mining leads to the federal government taking an equal amount less in royalties.
A similar move by West Australian Premier Colin Barnett stripped $2 billion from the federal Budget.
Any increase in NSW royalties would put Treasurer Wayne Swan's $3.5 billion surplus for 2012-13 at risk.
"We reserve the right to consider all measures in the budget," State Treasurer Mike Baird said yesterday.
"Our desire is to have a constructive relationship with the federal government but, we will make no apologies for standing up for NSW.".....
