Comparison of Public Sector Reform in Theory and in Practice - Example

Contents Contents 1 Introduction 2 Public sector reforms 3 Public administration and public management 3 Public administration and public management in theory 4 Marketisation 10 Corporate management 10 Regulation 11 Political control 11 Privatization 11 Decentralization 12 Contracting 12 Internal Australian Public Service Reforms 14 Conclusion 17 Annotated bibliography 18 Appendix 1: chronology. 25 Comparison of public sector reform in theory and in practice Introduction When we examine government from a historical point of view, we realize that governments have created institutions that never existed before within the public sector with the mandate to control as well as influence the societies and economies that the governments are mandated to govern. Governments today are not as they have been in the past. The change is as a result of adoption of public management strategies in the public sector as opposed to the traditional public administration principles.1 Furthermore, there has been rebellion by the governed and large organizations in the private sector with respect to being controlled by the government, a fact which has shifted the power structure. Consequently, governments have been forced to reexamine their effectiveness in influencing and shaping the lives of the governed. This paper compares the traditional public administration and the new public management in theory and in practice. In so doing, the paper distinguishes between the two terms and explains the features of each of the two terms. The paper also examines public management and public administration in practice with special reference to public reforms by the Australian federal government. Finally the paper concludes that public management has resulted in flexibility and accountability as well as provision of better public services although it has also encountered some challenges. The paper also notes that public sector reforms in Australia are incomplete to some extent as more and more changes continue to be implemented in a bid to make the public sector better. Public sector reforms Public sector reforms refer to a methodical procedure of ongoing tactical initiatives in reaction to change ensuing from domestic and external sources which affect the way the public sector is run.2 The ultimate goal of public sector reforms being to improve effectiveness and efficiency at both operational and service delivery levels. Public sector reforms have the purpose of fulfilling the constitutional mandate of the state which include good governance as well as promotion of national development. The public service should function competently and effectively all the times owing to the challenges existing in both domestic and external environment. All state institutions should operate in concert and this only happens when their activities are driven by the shared vision of national development. It involves the systematic departure from the traditional public administration to the new public management (NPM) concept Public administration and public management The term public management considers the government as well as non-profit administration as being similar to private sector management in some particular ways. Thus, there are management tools that are appropriate in both the public and private domain. These are tools which maximize efficiency as well as effectiveness. On the other hand, public administration refers the use of executive officers (civil servants) to implement government policy in the public sector through the use of the traditional social and cultural government drivers in implementing the policy.3 Attempts to reform the public sector have given rise to the new public management (NPM) which is a management philosophy that governments use to modernize the public sector. The term though complex and broad describes the wave of public sector reforms globally since 1980s. Its hypothesis is that more market orientation in the public sector would lead to greater cost efficiency for the government as well as efficient service delivery to the public sector. Public administration and public management in theory Public management seeks to apply the core values of business administration in the public administration domain. It adopts major principles of business administration in the public sector administration domain. Public management aims at efficiency and effectiveness as well as economy in performance of public sector through employment of modern managerial tools which include performance appraisals, functional autonomy, cost cutting, fiscal incentives, output targets, innovation, responsiveness, market orientations as well as accountability.4 Public management therefore advocates for an essential change in the way the public sector is run. Unlike public administration which is dependent on the state, public management is dependent on the market as the chief controller of communal and economic processes. Public management therefore pleads for the roll-back of state theory where the state acts as a catalyst and advocate of public activities as opposed to being a performer of those services and activities. As a result of public management, the role of the government has greatly changed consequently affecting the structure of the public sector and the roles of public managers. Traditionally, the government was the sole provider of public services to the public. However, with public management, governments are privatizing service provision with an aim of improving service delivery. The use of management markets in provision of public services has in turn resulted in narrowing the gap between the public and private sector. There has also been a change in the role of the government in the management of public enterprises. This has been characterized by privatization of government enterprises which began in the 1980s as well as contracting of government services to private contractors to deliver publicly funded services. Privatization has therefore changed to that of a regulator in the provision of services while contracting has changed the government’s role to that of a purchaser as well as evaluator. Managing for results is another component of public management.5 Traditional bureaucratic systems were characterized by strict compliance to rules and regulations as well as controlling of inputs or processes. Public management on the other hand is characterized by performance management systems which are driven by focus on outputs and measurable results. The employment relationships in the public service have also greatly changed. Introduction of human resources management in the public sector has altered ways of managing public sector employees thus challenging the traditional notions of a career service, lifelong employment as well as lifelong and service wide employment conditions. The emergence of public management has led to development of new tools, procedures and techniques to fine tune the public administration to enable it to effectively achieve its goals in the changing environment of privatization, globalization and liberalization. The aims of public management include creating a transformed focus on management, as opposed to policy, emphasizing on performance appraisal as well as efficiency, transformation of public technicalities to agencies dealing with one another on a user- pay basis, greater utilization of quasi-markets as well as contracting of services with an aim of enhancing the extent of competition, and a management approach that is dynamic and independent and emphasizes on fiscal incentives and goal setting. The following are the characteristics that distinguish public management from public administration and are hence the characteristic features of public reforms:6 a) Catalytic role of government Unlike in the traditional public administration, the government performs a catalytic role or offers a steering mechanism for various service providers such as public sector, private sector as well as various non-governmental organizations. b) Empowerment of citizens The government promotes and facilitates empowerment of citizens and communicates so as to facilitate them in solving their problems. c) Efficiency and economy in performance Public management is characterized by efficiency and economy in performance. The performance of public sector ought to be cost effective. Agencies ought to concentrate on their outcomes. d) An emphasis on goals as opposed to rules The public management perspective aims at goal oriented administration. The management approach should not be towards overemphasis on rules and regulations like in public administration. e) Customer oriented government The public management perspective defines clients as customers and pleads for offering those choices. Making services convenient and seeking their suggestions for the sake of service improvement. f) Competitive government According to public management theory, the government should always promote competitive environment among different service providers both public and private with an aim of bringing about efficiency and economy in the public sector. g) Anticipatory approach The public management theory advocates that the government should anticipate the problem beforehand and prevent them as opposed to devising cures after the problem get complicated. h) Enterprising government The government should focus on earning and saving money as opposed to spending. The government can mobilize monetary resources through savings, user charges, enterprise funds etc. i) Decentralization of authority The government ought to decentralize its authoritative structures in order to remove the negative consequences of hierarchy.7 The decentralized authority promotes participatory management as well as team work. j) Emphasis on market mechanism Influenced by neo-liberal viewpoint and public preference approach, the public management approach aims at the implementation of market system as opposed to bureaucratic system. The table below compares the traditional public administration with the modern public management of the public sector. Table 1 dimension Traditional public administration Reformed public sector (public management) Markeitsation -service delivery was generally a government monopoly and limited use of contractors in construction Purchaser -provider split including state provided services-APS agencies compete with private providers for public service delivery contracts -significant increase in contracting out for employment services Corporate management Public management focused on probity, procedure and accountability-uniform service provision Input focused budgets -tight central agency controls -traditional clerical approach -lifetime careers with significant recruitment of the young Managing for results -introduction of a menu of service and service providers -freedom of information Output measurement Deconcentration and risk management -adoption of information technology Contraction of recruitment, loss of junior grades SES structure with more short term contracts regulation Significant regulatory role in economic and labor markets policy -regulation a core part of agencies and integrated into agency structures Change in the nature of economic regulation to managed markets and use of fiscal and other incentives and disincentives -decentralized labor markets in favor of collective and individual bargaining -Monitoring of contracts and auditing financial performance More separation of regulatory arms from APS agencies. Political control Assumption that APS neutral, permanent and source of institutional sceptism Monopoly of policy advice Merit protection systems APS changes initiated by ministers to ensure they can act priorities and influence implementation Pluralisation of policy advice Open competition for senior appointments privatization -key utilities in public ownership -government owned trading companies and public corporations Preference of private ownership and monopolies regulated by the trade practices act -Complete or partial sale of government assets -Some public corporations still in public hands Decentralization Admistrative provincialism of APS services -extensive devolution to levels appropriate to decision -outsourcing of client based services Increased coordination 8 In practice, public sector management has evolved through six dimensions from the traditional public administration which include; Marketisation The traditional public sector administration involved public service delivery that was generally a monopoly.9 There was limited use of private contractors and this was controlled by the government although there was some use of contractors particularly in construction. However with the new public management, the situation has changed and public sector agencies are now allowed to compete with the private sector in provision of public services. There has also been increased contracting especially for employment services. In Australia, the national competition policy enacted in 1955 advocated for market provision of services and choice for citizens. During the first term of Prime Minister Howard, the preference for competitive service delivery became the official position while marketisation became more prevalent in his second term. Consequently, functions that were once consolidated in a few public institutions are now provided competitively by a market of providers.10 For instance, the state funding to address illicit drugs use which was traditionally allocated through existing programs run by state health departments now also attracts involvement of the private sector. Corporate management The traditional public administration mainly focused on probity, precedence and accountability with uniform service provision for all which was also characterized by input-focused budgets with tight central agency controls. However, with the introduction of public management, this has changed.11 Private sector management methods have been introduced into the public sector. The approach stresses hands on, professional management, explicit objectives as well as measures of performance, managing by results, value for money and output measurement as well as the recent shift of emphasis to responsiveness and closeness to customer. Regulation There has been a shift in regulatory styles traditionally witnessed in the public sector from a focus on inputs to concern about outputs as well as outcomes, quality assurance and control through agreement on performance standards that are to be met as opposed to through ownership. Political control The traditional public administration was characterized by the assumption that public service was neutral and permanent as well as a source of institutional skepticism and relied on a monopoly of policy advice. However, with the entrenchment of public management, the assumption has changed.12 For instance in Australia, there has been increased ministerial control of the policy agenda, priorities as well as decision making. This has also been coupled with more active engagement in the appointment and termination of senior public officials. Privatization Traditionally, all key utilities were in public ownership. The government also owned trading corporations as well as trading companies. For example in Australia; movement from departmental structures to corporations began when Australia post and telecom was created during Whitlam government13. However, with the onset of public management, there has been increased preference for private ownership with monopolies being regulated by the trade parties’ act. There has also been partial or complete sale of major federal government assets including common wealth bank, Qantas, Telstra, Airports, ANL Shipping line, Defense factories as well as common wealth land holdings14. However, it should be noted that the process remains incomplete with commercial activities such as Australian post remaining in public hands. Decentralization Decentralization includes both devolution and deconcentration. Deconcentration involves redistributing administrative responsibilities between central and line agencies within government.15 Devolution, on the other hand, is the exercise of political authority by lay elected, institutions within areas defined by community characteristics. Contracting Contracting has been a major characteristic of the new public management in Australia. The government has adopted contracting for the following reasons; Efficiency- this was in a bid to get more services for less bucks in specific programs Finance- government uses contracting in a bid to return to a balanced budget without increases on taxes16 Ideology – both parties believing in core tenets of neo-liberalism, most notably the virtues of competition and responsiveness. Specialization- this was in a bid to draw on external expertise as opposed to building up in house provision for services such as information technology. It is as a result of this aims of contracting that public services worth billions of dollars continue to be contracted. However, despite the benefits, there exist six unresolved issues on managing contract service delivery17. The issues include; a) Accountability – there have been problems for customers when contracting agencies have refused to take responsibility fro actions by their agents. b) Quality- although competitive tendering does not diminish service quality, it is difficult to specify quality precisely and monitor outcomes. c) Costs- although costs are claimed to fall by contracting by up to 30 percent, agencies may fail to specify costs of monitoring the contract. d) Broader social and economic impacts - although there is overall gain for the economy as a result of contracting, some individuals and groups are disadvantaged. e) Rural and remote areas - there is concern that contracting creates local unemployment. According to Davis and Rhodes, it is worth noting that despite the above issues, the benefits of public sector reforms through contracting greatly outweighs the issues in that the public sector operations have ben transformed and it now offers services in a timely and efficient manner.18 Internal Australian Public Service Reforms The onset of public sector reforms by the Australian Federal government resulted in some internal management reforms within the APS. These changes are explained in the table below. The adoption of the new public management strategies by the Australian federal government has fully transformed the public sector. This has created an environment where flexibility has flourished while accountability has been strengthened. There has been a decrease in government ownership at the federal level from the 1990s where over $90 billion of publicly owned organizations have been privatized. This has largely covered telecommunications, gas, electricity, airports and ports, rail, banks, gambling, hospitals and prisons.19 The government’s role has changed from that of the owner and manager to that of standard setter and regulator in line with principles of public management. In addition, all other government sectors have been reformed to focus on performance and enhanced accountability. There has also been increased public- private partnership for quite diverse projects ranging from Sydney airport rail link to social services delivery such as job network. The government has also begun to more systematically involve the citizens and stakeholders in policy development and implementation in public service. In their efforts to involve citizens, the government uses various techniques including focus groups, open inquiries, consultative committees and as well as negotiation processes.20 This has resulted in better policy and service delivery as well as better advice to the government about community perspectives.21 The federal government has also implemented a lot of technology changes resulting in reduction of the number of unskilled and semi skilled jobs leading to declining employment for the youth. Owing to this, the public service has decreased in size and is now characterized with a less occupationally diverse workforce. The onset of public sector reforms by the Australian Federal government has also resulted in some internal management reforms within the Australian public service. These changes are explained in the table below. Table 2. Change dimension Reform agenda Structural reforms Devolution and decentralization within agencies More varied information sources ,analysis and policy advice for government and parliament Flatter agency structures Acceptance of risk management than risk avoidance Formal introduction of executive agencies Employment relations reforms End to unified APS for bargaining purposes Improved morale and motivation but few opportunities for staff participation Improved flexibility when using resources and assigning staff Human resource management reforms Introduction of senor executive service with greater mobility between agencies Invention of senior officers grades to deal with lack of career opportunities Introduction of performance appraisals Adoption of equal employment principles Financial management and budgeting reforms Program management and budgeting at portfolio level Greater use of contestability in costing outputs to ratchet down costs Devolution of assets management agencies Assets sales and rationalization Adoption of accrual accounting, reporting and budgeting Commercial reforms Development of more efficient purchasing reforms -develop more professional and consistent processes for managing tenders and supervise contracts Separation of regulatory from service delivery function within agencies Greater capacity for agencies to keep revenue raised within the portfolio Planning and reporting reforms More objectives and strategic cabinet planning Provision of annual program performance statements to parliament Publication of financial and asset reports by the department of finance and public administration. 22 The adoption of public management by the federal government focusing on management for results and devolution has led to improved business and corporate planning, better performance management, better management of people and finances as well as increased use of competition. There has also been increased accountability in the public sector resulting from adoption of public management by the federal government. This is due to the fact that although the federal agencies do outsource functions, they do not outsource their responsibility or overall accountability. The parliament has always insisted on accountable delivery of services whether the service delivery is outsourced or not. Conclusion Broad system changes and detailed management reforms have greatly altered the shape of the Australian public service and made it more business like. Some of service delivery is now carried out by contractors giving rise to a contract nation thanks to the adoption of public management strategies.23 The changes have resulted in fragmentation of function and expertise raising issues about policy learning and steering. Although the contract state is the biggest effect of public sector reforms by Australia’s federal government, there are limits as some government activities are hard to specify in a form that can be expressed in a contract. Such activities include accountability.24 The government also seeks external views on policy questions but assesses and processes the information through standard agency budget and cabinet process. There have been several publications that specify government functions which cannot be made subject to a market and hence will continue being delivered by the public service. Such functions include the court system, national defense, foreign relations, and program priority decisions, direction of government employees, regulation of natural resources, intelligence as well as administration of treasury and administration of public trusts. All these services cannot be contracted and are hence delivered by the public sector. It should however be noted that the public sector reforms instituted in Australia have led to increased efficiency as well as accountability in the provision of government services in Australia.25 However, the public sector reforms are largely incomplete as more and more changes continue to be implemented with an aim of making the public sector more effective. Annotated bibliography Costello, B (2001). Public sector reform: an international perspective, London: Routledge. Costello examines the federal government efforts in improving the service quality, integrate products and services and provide employees incentives through private sector management strategies. This book shows the federal government got public support through holding of public meetings aimed at explaining the rationale of restructuring and the innovative incorporated client services system. The book shows the federal government has come up with new measures of monitoring individual user advancement, program results, managerial development and instruments. Hughes, Owen, E2003, public management and administration: an introduction, Palgrave Macmillan, London. The author gives a balanced account of how the public service management has changed and continues to change. He provides an introduction to and assesses the theories and principles of public management, the new public management and compares and contrasts it with the traditional model of public administration. In addition, the book treats the New Public management as an international phenomenon since it doe not give country- specific case studies. Flynn, N 2007, Public Sector Management, Fifth Edition, London, Sage. The author analyses the government’s approach to management of the public sector. The book deals with strategy, human resource management, competition and contracting and performance management. The book covers collaborative management, the increasing use of inspection and audit as government’s tool for controlling the public sector as well as new approaches to financial management including resource accounting and budgeting as well as public-private partnerships. Bertucci, G and A. Alberti (2005). The United Nations Programme in Public Administration: reinventing itself to help reinvent public administration, International Review of Administrative Sciences, 71(2), 337-353. The author describes how modern public administration ought to look like. He gives an account of how various governments are taking initiative in a bid to modernize their public sectors. In addition, the author has given a detailed analysis of internal changes that have taken place in the Public service in Australia. Lynn, L 2003 'Public management', in Peters, B, Guy & Pierre, J (eds.) Handbook of public administration, Sage Publications, London, Chapter 1, pp. 14-24. The author describes in details the features of modern day public management. A theoretical comparison between public management and public administration is given. Pyper, R. (2001). Public sector re-organisation: an international viewpoint, London: Routledge. Principal scholars give advances in theory and practice in the field. The book addresses the nature as well as impact of the public management, novel research methodology, reform and variations, as well as new model and framework for improvement of public management. Pollitt, C 2001, 'Clarifying convergence. Striking similarities and durable differences in public management reform', Public Management Review, vol. 3, no. 4, pp. 471-492. In this book, public administration and public management are compared in theory. The author gives the features that are common to both public management and public administration. He also gives the differentiating features between public management and public administration. Weller, P. (2003). ‘Common wealth-state reform process: A policy management review’, Australian Journal of Public Administration, 55(1): 95-110. Weller gives some standpoint on managerial reform in communal organizations by stressing past re-organisation efforts around the earth. The book gives a message of care and gives warning against unrealistic prospects in embarking on change efforts. Moran, T (2010). Reform of Australia government Administration: from blue print to outcomes, Public Administration today, July- September, pp37-42. The author explains the reform efforts by the Australian government in a bid to make the Australian public service better. The author explains the changes that have taken place in modernizing the public service. In addition, the author compares the traditional public administration in Australia with the new concept of new public management and its impact on public administration in Australia. Boston, J. (1995). Intrinsically functions of government and the limits to contracting out: the state under contract, Bridget William books. A client centered approach helps public sector managers in improving performance as well as delivery. Potential methods comprise of common learning and growth for staff, elastic operating as well as decision making structures, recognition of capabilities and shortages, and a general vision for driving objectives. This is comparable to the business process reengineering approach applied in the private sector. Steve Sedgwick, Public Service Commissioner, Australian Public Service Reform: The past, the present and the future, 8 June 2010 http://www.apsc.gov.au/media/sedgwick080610.htm The author gives an account of the various reforms that have been undertaken by Australian federal government in a bid to reform the public service. The book also compares the present Australian public service with the past. He also suggests that the public sector reforms remain incomplete and the government will continue undertaking changes in a bid to fully reform the public sector. Osborne, J. (2000).Political economy of public sector reform and privatization, Wakefield press, Kent Town. The book presents strategies that have been used by governments to reduce bureaucracy in the public sector in public sector reform efforts. The strategies comprise of government self examinations, devolution of government authority, formation of customer satisfaction practices, as well as privatizing some government functions. Davis, G and Rhodes, RAW 2000, 'From hierarchy to contracts and back again: reforming the Australian public service', in Keating, M, Wanna, J & Weller, P (eds.) Institutions on the edge? Capacity and governance, St Leonard’s, Allen & Unwin, Ch. 3. The author analyses the various changes that have been implemented in the public sector and compares public administration and public management in theory. He also uses Australia to portray the difference between public sector administration and public sector management in practice. Six dimensions of change in the public sector are analyzed using Australia as a case study. Aulich C (1999) Bureaucratic Limits to Markets: The Case of Local Government in Victoria, Australia. Public Money and Management October – December, p.37- 43. The author describes the bureaucratic nature of public administration and the limits to marketising service provision in the public sector. The author also describes marketisation and contracting as some of the most notable features of public management. The author uses Victorian local government as a case study. Ferlie, E. (1996).The new public management in action, London, Prentice House. A guide for public managers who are responsible implementing the politically accepted but not oftenly well considered programs to reengineer government. Questions addressed include the suitability and effectiveness of private sector model in its application in public sector reforms, the major political forces that affect reforms as well as how to accomplish the reforms in a constitutional and democratic government. Allison, GT (1986), 'Public and private management: are they fundamentally alike in all unimportant respects?', in Lane, Frederick S Current Issues in Public Administration, 3rd edn, St Martin’s Press, New York. The book compares and contrasts public and private management. The author also describes some features of private management that have ben adopted in the public sector. A comparison of public administration and the new public management is also given. Caulfield, J(2001). Service delivery and public sector marketing, Cambridge University Press, Melbourne. Caulfield examines issues related to privatization of public services, managed competition, and contracting. The book gives information regarding recent innovations in privatization efforts referring to precise practices and case studies that evaluate experiences of local public officers and managers. It examines issues and trends, operational aspects of contracting arrangements and results and futures prospects. Foerster, N. (2007) A passion for policy: essays in public sector reform, Butterworth, Sydney. The book provides an analysis of current conceptual debates in public management and governance and reviews attempts made over the last decade to apply the new public management model in developed and developing countries. Australian Public Service Commission (APSC) 2003, 'The Australian experience of public sector reform', Occasional Paper 2, Canprint, Canberra. The commission examines the various reforms that have taken place in the Australian public service. Various issues are addressed which include structural and legal reforms as well as financial and accountability reforms that have been undertaken by the government in a bid to reform the public service. Stringer, A (2003). ‘The concept of public management and the Australian state since the 1980s’, Australian Journal of Public Administration. 46 (4): 339-353. The author analyses Australia in terms of public sector reform progress. Such trends as movement towards public private partnerships which still maintain the significance of the central government, getting rid of political demands from administrative agencies, more flexibility together with strict outcome accountability, and the civilians as customers are discussed. Peters, G.B (2008).Taking stock: assessing public sector reforms, Outerbridge, New York. The government has invested a lot of time, political capital and money in reforms aimed at making the public sector more efficient. However, little has been invested in evaluation of effectiveness of the above efforts. Acceptance of most of the reforms owing to a belief in particular approaches of governing or an ideological obligation on the part of politicians. This book takes stock of the reform measures and their impact on public administration. Parliamentary library, (2010). Chronology of changes in the Australian public service, retrieved on May, 5, 2011, from: http://www.aph.gov.au/library/pubs/BN/pol/APSChanges.htm A chronology of the various changes that have taken place in the Australian public sector since the creation of common wealth government is given. Appendix 1: chronology. The following is the chronology of public sector reforms in Australian federal government from 1901 to 2010 year details 1901 Establishment of federal government (common wealth) of Australia with control of customs and exercise with seven departments. 1902 Public service act establishes permanent professional common wealth public service 1922 Enactment of public service act of 1922 1949 Permanent appointment of women allowed 1966 Marriage ban for women in the Australian public service removed 1968 Equal pay for women allowed 1974 Government establishes the royal commission into Australian government administration (RCAGA) to undertake comprehensive review of public administration 1975 Establishment of equal employment opportunity in the public service board to address employment inequalities facing women, people with disabilities and other marginalized groups. - -establishment of admistrative appeals tribunal for providing independent review of wide range administrative decisions by the federal government 1976 Report into government administration (Coombs Commission) supports: more accountability for public servants; mechanisms to improve the relationship between officials and the community; an emphasis on managerial skills; more efficient and responsive service delivery; devolution of responsibility, as well as greater flexibility and diversity in organizational styles; more efficient and economical use of human resources; and a more open public service. 1976 Commonwealth Ombudsman is established to consider complaints from people who believe they have been adversely affected by the defective administration of Commonwealth departments or agencies. 1977 Legislation to facilitate judicial review by the Federal Court of some exercises of Commonwealth power (came into operation 1 October 1980). 1977 Legislation to allow for the dismissal of staff who engage in industrial action and the suspension without pay of staff who cannot work as a result of industrial action (repealed with effect from November 1983). 1979 Facilitation of retrenchment of public servants surplus 1980 Public Service Board advises departments to adopt the common law principle of 'No work as directed, no pay'. This is ruled not to be legal, leading to the amendment of the Public Service Act 1922 to provide for the principle (repealed in 1983). 1982 Extension of the right of the public to access information in the hands of the government. 1983 Emphasis on efficiency, effectiveness, equity and quality management of public service 1984 Enactment of public service reform act that provided for enshrinement of the merit principle, equal employment opportunity, industrial democracy, permanent part time work and greater political role in appointment of departmental secretaries 1984 Abolition of the Public Service Arbitrator. -Budget Reform paper sets out the Government's reform priorities: better means of identifying and setting budget priorities; more emphasis on the goals and objectives of programs; improved performance and efficiency; and effective review mechanisms -The Members of Parliament (Staff) Act 1984 takes effect. This legislation creates a separate, formal legislative basis for the employment of staff by members of parliament, making such employment potentially independent from public service employment 1985 Public Service Board develops a model Occupational Health and Safety (OH&S) agreement. 1986 Prime minister announces creation of efficiency scrutiny unit for investigating cost saving opportunities, measures to enhance financial efficiency and changes to personnel management 1987 Streamlining of departments from 28 to 18 headed by senior ministers assisted by junior ministers. The government replaces public sector board with public service commission. 1988 -Adoption of the Structural Efficiency Principle leads to rationalization of job classifications for professional, technical and blue collar grades. -Privacy Act 1988 passed, regulating the collection, handling and use of personal information by the Commonwealth, and also establishing the Privacy Commissioner within the Human Rights and Equal Opportunity Commission. 1990 EPAC reports that productivity improvements in the public sector have outpaced those of private sector. 1990 Decision to restructure the Commonwealth Bank in preparation for a partial public float heralds a series of major full or partial privatizations, including: Commonwealth Bank; Qantas and Australian Airlines; Telstra (announced October 1997); Major airports; Moomba-Sydney gas pipeline; National electricity transmission network; and DASFLEET. 1992 Announcement that all new contracts with the Department of Administrative Services will include a clause requiring suppliers to comply with the EEO requirements of the Government. 1992 Performance pay introduced for senior officers to encourage productivity growth 1994 Provision of fixed term appointments for departmental secretaries 1994 In response to the Committee on Public Accounts' (JCPA) report on the Audit Office, the Government introduces new financial accountability legislation, and announces its intention that the Auditor-General be funded directly from the Budget and that a parliamentary Audit Committee be established. (Ultimately, no separate committee is set up. Instead, the JCPA is changed to the Joint Committee on Public Accounts and Audit).1989 Joint 1995 In response to the 1989 Joint Committee on Public Accounts' (JCPA) report on the Audit Office, the Government introduces new financial accountability legislation, and announces its intention that the Auditor-General be funded directly from the Budget and that a parliamentary Audit Committee be established. (Ultimately, no separate committee is set up. Instead, the JCPA is changed to the Joint Committee on Public Accounts and Audit). 1996 National commission of audit recommends a more limited role of government , grater emphasis on effectiveness and efficiency and separation of policy formation from program delivery 1996 Under the Workplace Relations Act 1996: illegal for agencies to pay employees while on strike, or using bans or limitations; limitations on union officials' access to workplaces; provision for agencies to make individual agreements with staff; award simplification, removing some rights that had been negotiated under previous awards; and Move from paid rate awards to minimum rate awards (eroding pay over time). 1997 Government departments ,businesses and agencies required to establish customer service charters -Government introduces Public Service Bill (amended Bill passed in 1999). -Departments’ information technology infrastructure outsourced to private sector -Attorney-General announces that the Government proposes to amalgamate the Administrative Appeals Tribunal, the Social Security Appeals Tribunal, the Immigration Review Tribunal and the Refugee Review Tribunal to create a single review body to be called the Administrative Review Tribunal (expected to commence operations in February 2001). Originally, the Veterans' Review Board was also to be amalgamated but this was reversed in February 1992. 1998 Employment service contracted out to job network -Charter of Budget Honesty Act 1998 is passed, providing for the publication of: regular reports setting out fiscal strategy; an intergenerational report at least once every five years assessing the long term sustainability of government policies; a pre-election economic and fiscal outlook report; and Costing of election commitments. -Package of new financial management legislation comes into effect: responsibilities of agency heads in such areas as record keeping, fraud control and borrowing; reporting and auditing requirements for Commonwealth authorities, as well as standards of conduct; and More independence for the Auditor-General and a greater role for Parliament in advising of its audit priorities, approving the appointment of the Auditor-General and reviewing the budget of the Auditor-General. 1999 Agencies enabled to operate bank accounts with private sector banks , opening reserve bank of Australia to competition -Public Service Act 1999 and Parliamentary Service Act 1999 take effect, establishing the separation of parliamentary departments from public service departments and enshrining a range of features, including: values and codes of conduct; protection for whistleblowers; employment equity; prohibition on patronage and favoritism; streamlining of employment powers (including those of dismissal) of departmental secretaries; and Making provisions for departmental secretaries to enter into collective and/or individual employment contracts and agreements. The Act also replaces the Management Advisory Board with the Management Advisory Committee. 2001 Senate agrees to a motion requiring all APS agencies to report twice a year on contracts greater than $100,000 in value, indicating the value of the contract, the person or organisation with which the contract was made, and whether any contract provisions or related matters include any confidentiality restrictions. 2002 Public Sector and Merit Protection Commission renamed as Australian Public Service Commission, and given increased priority to: indigenous employment in the APS; evaluation responsibilities; and Partnerships with agencies to improve management practices. 2003 The john Uhrig review recommends corporate governance of statutory authorities 2004 Review of government procurement guidelines 2007 All appointments of departmental secretaries are made to be five years 26Parliamentary library, (2010). Chronology of changes in the Australian public service, retrieved on May, 5, 2011, from: http://www.aph.gov.au/library/pubs/BN/pol/APSChanges.htm Read More