The Auditor-General's Annual Report for the year ended 30 June 2008, was tabled in Parliament on Tuesday 14 October 2008. www.audit.sa.gov.au

The Auditor-General made Audit Observations about the Shared Services Initiative.

The Auditor-General commented that last year he recognised the “complexity of the Shared Services initiative.” This year under the heading “Delays and Risks” the report refers to “the lower savings potential”.

No allowance had been made for “fit out cost” for accommodation and they “substantially underestimated the transition costs associated with accommodation.”

There is now $4.1 million in “dead rent” which cannot be recovered.

Accommodation arrangements result in an anticipated $32 million budget deterioration over the next four years.

PSA has previously commissioned reports which were provided to Government showing that the stated savings could not be achieved.

PSA has stated that country staff should stay in location thus saving accommodation costs. Other staff including hospital staff could stay in their metropolitan locations.

The PSA has consistently questioned the Government why they propose to move employees from low rental areas to the highest rental CBD. As well as the PSA's concerns about dislocation and disadvantage to PSA members.

It does not make sense. Neither does it add up.

PSA calls on the Government to learn from the Auditor-General's report.

It is not too late to reduce the budget blow-out.

For further enquiries, please contact PSA Acting Assistant Chief Industrial Officer Ian Peak on phone (08) 8205 3294 or email ian@cpsu.asn.au