Brumby Government Dodges Budget Accountability

Bill Sykes, Nationals Treasury Spokesperson has refused to endorse a Public Accounts & Estimates Committee (PAEC) Report on the 2007/08 Budget Estimates because it lacks critical analysis of many of the Brumby Government’s dodgy claims.

Dr Sykes submitted a Minority Report in which he stated:-

I wish to congratulate the PAEC staff for their efforts in preparing the PAEC Report on the 2007-08 Budget Estimates within a very tight time frame with very limited resources.

However, I am unable to endorse the final report as I believe that there has been insufficient critical analysis of statements by Ministers and Government Departments.

For example in Chapter 4 – Productivity – Impact of new initiatives and portfolios spending on productivity in Victoria it is stated, “The Shepparton irrigation project illustrates how productivity is improving through the budget, whereby that irrigation system will be more efficient by some 50 billion litres a year”.

A technical discussion paper prepared for the local Water Services Committee, using the Government’s own figures on water losses, clearly demonstrates that substantially less than 50 billion litres of water savings will be available in dry years, the time when savings are most needed.

Critical analysis would identify this significant error of fact and lead to different conclusions on the economic, social and environmental impact of the project, in particular the availability of “water savings” for Melbourne via the North-South pipeline.

In Appendix 4 – Response to questions on notice, a ministerial response to a question regarding the level of funding for non government schools in Victoria is reported.

The response refers the reader to the 2005 National Report on Schooling in Australia website rather than reporting the specific information.

Why is the specific information not included in the report? Is it because the tables show that Victorian non Government schools are very poorly funded in comparison with non Government schools in other Australian States & Territories?

Finally, at time of announcing the Budget the then Treasurer and Treasury staff pointed out that the predicted rate of economic growth was reduced by around 20% due to the impact of the prevailing drought. It was stated this effect was predicted to disappear during 2007/08. The budget estimates are based on this improvement in conditions.

Given the current seasonal conditions it would be reasonable to re-assess the continuing impact of the drought and modify key projections accordingly.

The PAEC must retain its independence to ensure that it is able to fulfil its responsibility to provide thorough critical analysis of future budget estimates and to generally hold the Government accountable.

Dr Sykes said, “Premier Brumby is continuing to promulgate outrageous claims, working on the basis that if you say something often enough it becomes fact.

“He is currently doing this in relation to claimed water savings for the North South Pipeline. Rather than agree to an independent audit he just repeats his unsubstantiated claimed water savings.”

Dr Sykes concluded, “I will continue to use my position on PAEC and every other means available to hold Mr Brumby and his Government to account.”

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