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WA government's payout to senior executives will cost taxpayers $25 million: Nahan

Brendan Foster

Updated ,first published

The McGowan government's payout to senior executives as part of its radical public sector overhaul could leave taxpayers with a $25 million bill, according to state opposition leader Mike Nahan.

In April the state government announced it was slashing the number of department heads, with 20 per cent of jobs in the 521-member Senior Executive Service - WA's highest paid bureaucrats - to go.

WA Liberal leader Mike Nahan is against secession.Louise Kennerley

So far, Labor has splashed out more than $5 million in payouts for 18 senior executives who have departed the public service.

Former head of the Department of Training and Workforce Development Ruth Shean got the biggest payout with $424,591.

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Premier Mark McGowan is moving on senior bureaucrats.

But with more senior executives liley to go, Dr Nahan has warned the final bill could exceed $25 million.

"There are 21 or 22 who have been moved on from their substantial positions and by the way they have been replaced to a large extent," he told reporters on the steps of Parliament on Tuesday morning.

"So there are no savings there, so eventually it's assumed they will be moved on or find other positions, but they are some of the people who are the highest paid and therefore their payouts will be very large indeed.

"So this is just the beginning and according to the McGowan government a hundred senior executives will exit the senior executive services, which is 20 per cent of the 500 and on a pro rata basis that's $25 million."

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The Liberal leader claims the WA government's first budget will be thrown into disarray after the "sacking" or "moving" on of more than 40 senior executives.

He also had a crack at the number of senior ministers, including Premier Mark McGowan, for going on holidays 65 days before the State Budget was handed down.

"Ministers' diaries would normally be filled with Expenditure Review Committee Meetings, meeting with departments and meetings with other ministers to finalise the details of the budget," he said in a statement."As former treasurer I am well aware of the work required at this time of the budget cycle and yet the Premier, Treasurer and swag of senior ministers are away on holidays.

"There are Directors General who have been removed, or moved aside from their primary role, who have intimate knowledge of their former department and its expenditure, line item by line item and they are gone."

A spokesperson for the Acting Premier Roger Cook said the McGowan Government's range of public sector reforms are anticipated to save hundreds of millions of dollars.

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"The Opposition is obsessed with senior executive movements but we're focused on delivering better government for all Western Australians," they said.

"The Machinery of Government changes are ultimately about ending the silos in the public sector, and ending the waste, inefficiency and duplication of the previous Government.

"We have committed to reducing the Senior Executive Service, the State's highest-paid bureaucrats, by 20 per cent. A Public Sector Commissioner's circular which outlines the ways in which this can be achieved has been circulated to agency heads. They are responsible for the reduction of the SES. We will work with staff, and work with unions to achieve the best and fairest outcomes and ensure it is approached in a managed, orderly and equitable way.

"The Public Sector Commission is going about this process thoughtfully and diligently. We are fixing the financial mess and dysfunction left behind by the previous government and getting on with delivering our commitment to implement real change across our public sector."

Brendan FosterBrendan Foster is a Fremantle local, former Fairfax journalist and communication professional, with work published in Guardian Australia, The New York Daily, The New York Times, Crikey, WAtoday, News.com.au, The Irish Times and The Sunday Times.

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