A lot of euphemisms have been used, such as modernization. Yesterday I heard the expenditure review process referred to as investing in food safety--reallocations instead of cuts. The reason the strategic expenditure review process is such a concern is because of the way in which the cost savings are to be achieved, or proposed to be achieved. The fact is that program areas are being cut in the reallocation process.
If you believe that the transition from a hands-on inspection model to an audit-based verification system is the way to go, with strong government oversight and penalties attached to inspections and penalties to ensure compliance, then you have to believe there will still be a strong government role to enforce the self-regulation.
It's precisely the concerns around government's ability to even play that role that's an issue.