THE Cabinet yesterday approved the cancellation of 400 permanent positions in the public sector, in a move that is expected to save the state around €11.5 million.
Speaking after yesterday’s meeting, Government Spokesman Stefanos Stefanou said the positions involved certain ministries, though he didn’t announce which ones.
He added that the decision was part of the government’s efforts to tidy up public finances.
“It is well-known that the government has started intense efforts for an economic recovery,” said Stefanou. “A significant part of this effort is to reduce expenditure in the public service’s operation and maintenance.”
He said the government was achieving this in two ways: first, by reducing operational costs for 2010 and 2011 – which will save the state around €170 million – and then by reducing the number of public servants.
Stefanou explained that for the first time in the history of the Cyprus Republic, the number of public servants was reduced by 530 at the beginning of the year, saving the state around €13 million annually.
“Today, the Cabinet decided to cancel another 400 permanent decisions, which again has happened for the first time. This will save the state around €11.5 million.”
He added that the government didn’t intend to stop there. “We will continue with specific efforts and actions to further reduce the expenditure of the money-wasting state, something which was created in previous years.”
Stefanou put in a reminder of the government’s commitment to reduce the public service by 1,000 positions each year, adding that this new measure was part of that commitment.
The Government Spokesman said the cancelled positions involved “specific ministries and specific positions, depending on the needs of the various ministries”.
He said there were ministries with increased needs and others with less.
“But this is always done with discussions and an evaluation of each ministry’s needs and of course this is made possible through better management of human resources, a simplification of procedures and other changes that are being made in the public service’s operation,” said Stefanou.
The aim of these measures, he added, was not to undermine the efficiency of the state, or the quality of services offered.
Asked if this meant the cancelled positions would be covered by contract workers, Stefanou didn’t quite clarify, but said there was a law pending at parliament for a few months now, which provides that contract workers can no longer be employed in the public sector.
