Minister for Finance and Deregulation (Finance), Lindsay Tanner, will "have few qualms about withholding the reinvestment of $500 million in savings" destined for the Gershon Reinvestment Fund, unless the Government sees a productivity increase, reported the Australian Financial Review.
The warning was issued at a briefing held last Friday where Finance Minister Tanner, and Telstra Enterprise and Government Group Managing Director Ms Nerida Caesar launched the Telstra Government Productivity Report.
Tanner observed a key challenge for all levels of government is to continue to realise the benefits of ICT, by focusing investment in areas that deliver real benefits.
"As part of the Government’s ICT reform program, we are committed to reinvesting in initiatives designed to further improve the effectiveness and efficiency of ICT operations, attract and retain staff, as well as drive productivity gains in the public sector," he said.
The Telstra Government Productivity Report found the public sector has high expectations of ICT-enabled productivity growth over the next 12 months, but only two in five government organisations can identify what measurement will be used to quantify productivity gains.
The Report found budget constraints have placed more emphasis on getting the most out of existing ICT already in place rather than investing in new technology. Over three quarters of government organisations surveyed expect to see improvements in productivity over next 12 months. Many cited ICT investment as the key motivator to drive productivity gains.
Telstra commissioned a survey of 200 senior executives across federal, state and local government and statutory authorities to explore the public sector’s attitude towards improving productivity, efficiency and performance.