Dutton: Public service jobs to come from Canberra

Federal opposition leader Peter Dutton has confirmed that the Coalition’s plan to cut 41,000 federal public service jobs would be confined entirely to Canberra, telling reporters today: “We’ve been very clear about that.”

Labor estimates the proposed figure would amount to nearly 60 per cent of the city’s entire federal public service workforce. According to the Australian Public Service Commission, there were 69,438 APS employees in the ACT, as of December.

Finance minister Senator Katy Gallagher said that the numbers “simply don’t add up”, and warned that it would be impossible to achieve cuts of that magnitude without dismantling frontline and national security agencies such as Services Australia, the National Emergency Management Agency or the Department of Defence, or abolishing entire departments, including Treasury, Education, and Health and Aged Care.

About half of APS staff in Canberra (nearly 34,000 people) work in frontline or national security roles. More than 17,000 are employed in Defence, Services Australia, Veterans Affairs, the NDIA and intelligence agencies. Excluding these, the proposed cuts would leave only 10,000 public servants in other departments and agencies, independent Senator David Pocock estimated.

“The only thing that is clear from Peter Dutton’s reckless approach to APS cuts is that Australians will pay the price,” Senator Gallagher said. “It is impossible to cut 41,000 jobs in Canberra without gutting frontline services and national security.”

However, Liberals Senate candidate Jacob Vadakkedathu said today that only a third of the cuts would come from Canberra.

Senator Pocock warned that the job cuts would not only cripple the APS but also crash the ACT economy, tipping it into a deep recession. Using previous ACT Government modelling, he said that the job losses would shrink the gross state product by $5.6 billion (roughly 10 per cent).

“The Coalition is being completely reckless not just with the livelihoods of 41,000 public servants but also the economic wellbeing of more than 450,000 people who call Canberra home,” Senator Pocock said.

ACT minister Chris Steel MLA (Labor) said: “The greatest risk to the ACT’s economy remains the election of a Liberal Government and their commitment to cut 41,000 jobs in Canberra. It’s deliberate commitment to contract our economy and hurt Canberrans and Canberra businesses. We also know what the impact of this is on the ACT because we’ve seen this before –in the Abbott/Hockey austerity Budget in 2014 – and the promise to cut public service jobs by 16,500. This represents a more than doubling of their 2014 public service cuts by the Liberals, and a pledge to implement Trump’s DOGE chaos in the ACT. The difference this time, is not just the scale of the Liberals proposed Commonwealth jobs cuts, it’s a commitment to prolonged contraction.”

Businesses affected by light rail say they need support

Independent politicians and business leaders have called for the ACT and federal governments to provide a support package for businesses affected by light rail construction.

Construction works for Light Rail Stage 2A (Woden to Commonwealth Park) are expected to be finished in 2027. Businesses report that their turnout has fallen 30 to 60 per cent — “totally unsustainable for a project that’s going to take three years,” Senator David Pocock said — and many fear that they could close.

“If you take a look at some of the images of what’s happening or ask any of the business owners around London Circuit, no one is doing well at the moment,” said Nick Smith, who manages and owns Bar Rochford, in the Melbourne Building, London Circuit.

“There is zero compensation from the ACT Government during the construction period, hence why Rochford has been holding several additional events to boost the bank balance during an already stressful financial time.

“Whilst we recognise the importance of change in this city and support the Light Rail, two — potentially three — years of boarded construction, limited access for customers, next-to-zero parking options for elderly patrons on weekends (that’s in a functional walking distance), and constant late arrivals for bookings has put a serious dent on our service and business.”

The proposed support package would provide rates relief (the Legislative Assembly passed a motion to do so in early March, not yet implemented); rent assistance co-funded by the Commonwealth and ACT governments for those businesses most severely impacted; and a tax amnesty period on interest and penalties occurred.

“This is a commonsense approach to supporting small businesses through a tough time,” Senator Pocock said. “Providing support now […] will pay dividends in the longer-term by maintaining a vibrant city centre.”

Independent MLA Thomas Emerson said that despite the government’s commitment to the night-time economy, the government had “hung […] some of the iconic venues that fuel our night-time economy […] out to dry”.

“City-shaping venues shouldn’t become the collateral damage of city-shaping infrastructure works,” Mr Emerson said. “These venues need a proper support package, not just vague assurances about ‘ongoing engagement’.”

Canberra has the highest rate of business insolvencies in the country. The Canberra Business Chamber has repeatedly called for rates relief for affected properties and provisions to ensure relief is passed on to those properties’ tenants.

“Many small businesses are operating on wafer thin net margins, and it doesn’t take much of a drop off in customers to tip a business from being sustainable into needing to close down,” CEO Greg Harford said.

The Council of Small Business Organisations Australia (COSBOA) has called for a targeted company tax cut from 25 to 20 per cent for small businesses; CEO Luke Achterstraat argued it would provide instant relief for small businesses, upon which local economies rely. “They are big employers and are part of our social fabric, strengthening communities and creating opportunities.”

Ant Arena, owner of the Molly’s speakeasy and CEO of the Lala Hospitality Group, said the ACT was overtaxed and burdened with red tape, while support was inaccessible and the government unhelpful.

“Small businesses, particularly in hospitality, are bearing the brunt. […] If the ACT Government wants a vibrant city and thriving small business sector, it needs to seriously rethink its tax settings, prioritise practical support, and acknowledge the damage that these overlapping pressures are causing to local operators.”

The ACT Government was asked for comment.

Since the start of the year, the Canberra Liberals have called for greater financial support for businesses affected by light rail stage 2A construction, opposition leader Leanne Castley MLA said.

“Our team has met several times with affected businesses and moved a motion in the Legislative Assembly calling on the ACT Labor government to provide greater support. This has fallen on deaf ears and support must be provided before businesses start going broke.  A few signs or half a dozen more car parks won’t stop these hard-working small businesses from collapsing. It’s unfortunate that Senator Pocock has been silent on this issue until now.”