Axe falls on federal jobs as budget cuts bite

The government plans to shed more than 4,000 jobs by 2010 Keystone

The government says it is to cut an additional 800 jobs as part of efforts to make annual savings of SFr190 million ($158 million) over the next three years.

The federal authorities intend to axe more than 4,000 civil-service jobs by 2010 as part of an ongoing programme to balance the books.

Unions condemned the move as a “pointless reorganisation”, adding that federal administration staff were bearing the brunt of government belt-tightening.

Finance Minister Hans-Rudolf Merz pointed out that half of the savings would be made through job cuts, adding that he hoped these could be achieved through natural wastage.

The government has made no bones about its intention to wipe out the federal deficit by 2007.

In December 2003 parliament approved a first round of spending cuts, totalling a record SFr3 billion. Twelve months later the government proposed further cuts of SFr2 billion for 2006-2008.

Ministers claim that if the latest package is approved by parliament, there will be surpluses of SFr600 million and SFr700 million in 2007 and 2008 respectively.

Trimming the fat

As well as reducing public spending, the government wants to trim the fat off the administration and shed more than 4,000 staff by 2010.

This represents a 13 per cent reduction in the 34,600 personnel working for the federal administration at the end of 2003.

Merz said the restructuring process was now gathering steam and he gave an indication on Wednesday of how annual savings of SFr190 million would be achieved.

Between 2005 and 2008 the seven government ministries – defence, economics, finance, foreign, interior, justice and transport – plus the Federal Chancellery will have to cut expenditure by five per cent and their staff bills by three per cent.

The latter measure is expected to produce savings of around SFr80 million a year.

The finance ministry has already announced that 270 jobs will go, and the foreign ministry has said it expects to close six consulates, including four in eastern Europe.

The government also tabled proposals last year to raise taxes on alcohol and tobacco to boost revenue.

swissinfo with agencies

In brief

The government on Wednesday announced a restructuring plan that will see it cut jobs and streamline the business of the federal administration. The aim is to save SFr190 million a year between 2005 and 2008.

The cost-cutting programme affects goods and services (41.3%), investment in new projects (14.4%) and staff (44.3%). Around 800 posts will be axed.

More than 4,000 jobs are expected to go by 2010 as a result of wide-ranging government budget cuts.