Government tightens belt with $200 million savings.

Premier Anna Bligh and Treasurer Andrew Fraser will announce a new round of savings as part of Tuesday’s Major Economic Statement.

Ms Bligh said the government had targeted a further $200m in savings in its effort to keep the foot on the pedal of the government’s infrastructure program as it sought to support growth and jobs in an economy being rocked by the global financial crisis.

“This is about stripping out every bit of fat we can to keep the motor running in the economy and protect jobs for Queenslanders,’’ she said.

“We have said all along that we need to make sacrifices in order to maintain our capital program and jobs as we face the full force of the global economic crisis.

After implementing a new savings dividend which cut $60 million from the Budget this year, Treasurer Andrew Fraser will more than double planned cuts in Tuesday’s Major Economic Statement.

Publications will be slashed and sent online, planned increases to MP allowances cancelled and spending on marketing and communications departments targeted as part of the effort to curb spending.

Ms Bligh said she was cancelling a planned increase to MP allowances, which comes after pay rises for MPs were shelved earlier this year.

“There was due to be an annual increase of more than 5 per cent on what MPs currently receive – that is now no longer happening.

“Everyone is tightening their belt, every business, every family and we must do the same.’’

In the June 3^rd Budget, a dividend of $60 million for 2008-09 was announced, along with a planned increase of $80 million in 2009-10.

As the Bligh Government seeks to counteract falling revenues from the global financial crisis, Mr Fraser said the savings would be made permanent and lifted by another $100 million after next year.

Mr Fraser said this meant government departments would be required to produce an additional $200 million in savings across the forward estimates of the Budget.

“The government is targeting a 30% cut in publishing costs, with publications like ‘’Education Views’’ and ‘’Health Matters’’ to be published online, ‘’ Mr Fraser said.

“Considerable funds are spent publishing newsletters and magazines. Access to the internet and email means we need to rethink old practices.

“Annual Reports will now be primarily published online, with only plain paper copies otherwise made available.’’

“Any savings will, of course, be channelled immediately into frontline service delivery.’’

With jobs the number one policy priority, Ms Bligh committed to ensuring that any staff no longer required in these areas would be redeployed and there would be no forced redundancies.

“We need to tighten our belt and that means we will be targeting spending in marketing and communication budgets.’’

Media contact (Treasurer’s office): 0458 357 539