LNP to cap wages bill to three per cent

Public sector wage spending will be capped at 3 per cent a year to fund the Queensland Liberal National Party’s election promises.

The cap on expenditure is part of the LNP’s costings for its election promises, which they say total about $4 billion and will be released on Thursday.

Labor says the LNP has promised about $8 billion in election sweeteners.

The LNP claimed on Wednesday night public sector expenses had been growing by an unsustainable rate of between 8 per cent and 11 per cent a year under Labor, The Courier-Mail reports.

Under the 3 per cent target, some departments delivering frontline services, such as Queensland Health, would be allowed to grow at a faster rate.

Others would have to reduce employee expenses so the overall growth rate could be reached.

The LNP hopes natural attrition in the public service will deliver the reduction in employee expenses, thus avoiding forced redundancies.

“It is affordable, it is sustainable, it is responsible,” shadow treasurer Tim Nicholls told News Limited.

“And it frees up resources to deliver frontline services for Queenslanders.”

The Bligh Government’s 2.5 per cent wages cap, which has been surpassed several times during wage agreements with unions, will be scrapped.

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