PUBLIC service cuts are pinching the federal Treasury, stymieing creative thinking and attempts to promote more women to senior positions, Secretary Martin Parkinson says.
As the Abbott government presses ahead with plans to slash 12,000 public service jobs by way of natural attrition, the Treasury boss says his department is about halfway there, having reduced its staff of 1000 by 15 per cent.
The change means delivering similar outcomes in a very different manner, Dr Parkinson told a gathering of public administrators in Canberra on Thursday.
"In the past, our response to increased demands was to increase our efforts: by working harder and longer," he said.
"Needless to say, this is not sustainable and it also crowds out any attempts to think differently - and smarter - about prioritising our resources."
Promotion opportunities will also be hit by the cutbacks, Dr Parkinson says.
"The government's interim recruitment arrangements are going to make it harder to see women - or anyone, for that matter - progress through to leadership positions."
After helping the government deliver its first-term budget in May, Dr Parkinson will leave the top job in a move widely reported to be politically motivated.
During his three-plus years as Treasury boss, Dr Parkinson said the department had modified its operations to meet a changing environment.
But challenges remain.
He defended the Treasury's production of the 2013 Pre-election Economic and Fiscal Outlook, describing it as an example of the department's willingness to be innovative.
"This is something we had not done in the past, but thought it necessary to increase the transparency and public understanding of our forecasts and the economic environment."
And he hit out at critics who say Treasury does not understand business.
"The Treasury is a much more diverse organisation now in terms of work experience and subject matter expertise than we have been at any point in the past," Dr Parkinson said, adding that about a fifth of senior and executive level staff have private sector experience.
Dr Parkinson renewed his call for Treasury to have a stronger base in Sydney and possibly other capital cities, to build links with business.
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