Treasurer Foley announced in today's mid year Budget Review that 1600 public sector jobs would be slashed over the next three years. Targeted voluntary separation packages will be offered to reduce public sector numbers. 1200 jobs will go in the next 18 months, with the total 1600 going over a three year period.

This is a disappointing decision for the South Australian community. During an economic downturn, more and more families will be relying on public services, many already operating on the barest of budgets. This also has the potential to increase South Australia's unemployment rate during the economic downturn.

Health services, education, the justice sector, transport and the environment will all be affected by this short-term decision to save money instead of investing in the long term future of our State. The public sector is also facing the difficulties of an ageing workforce and skills shortages, so many experienced and knowledgeable staff will be lost.

Other announcements today included the delay of capital projects.

The PSA vigorously opposed public sector cuts at the last State Election, and continues to do so.