Mr MILLS - 2006-02-16
You have made much of your projected deficit of $68m, and that your projections are you will come in on target at that $68m deficient. However, what you have not told Territorians is that, according to page 26 of your mid-year report, you have sold $40m of financial assets for liquidity purposes and, on page 24, you have increased borrowings by $50m. These amounts were not in the original budget and represent $90m of extra debt and asset sales. Do you agree that, by not including this asset stripping and borrowing in your original budget and then claim that you will meet your projected budget result, it is neither transparent nor honest?
ANSWER
I absolutely reject that, Madam Speaker! In fact, public finances in the Northern Territory have never been more transparent than when this government came to office and passed the Fiscal Integrity and Transparency Act. Do you know why we passed that? To stop the cheating, the lying, the deceitful budgets that you guys introduced three years in a row. We follow the Fiscal Integrity and Transparency Act to the letter of the law.
I am not sure what figures the shadow minister is referring to, but there is nothing – nothing - by way of exposure in selling off hidden assets or bringing other things on to the book – no such thing whatsoever. He could be looking at some accrual figures.
We had this allegation the other day in terms of a blow-out: ‘You spent so much more over the first half of the financial year’. Governments always do. Governments invariably spend more over a financial year than they budgeted for at the outset. I gave the example that, if a school is blown away in a cyclone, are you going to sit there and say: ‘Sorry, you cannot have your school for 18 months because it is going to blow our budget out’? Governments also get more revenue throughout the year and that is why, when we put the budget down in May 2005, we predicted a $68.9m deficit. At the halfway mark, at the mid-year report - notwithstanding there has been increased expenditure and also increased revenue flows - Treasury are holding to a $68.2m deficit. That is pretty remarkable: to be able to sustain that progress throughout the year.
ANSWER
I absolutely reject that, Madam Speaker! In fact, public finances in the Northern Territory have never been more transparent than when this government came to office and passed the Fiscal Integrity and Transparency Act. Do you know why we passed that? To stop the cheating, the lying, the deceitful budgets that you guys introduced three years in a row. We follow the Fiscal Integrity and Transparency Act to the letter of the law.
I am not sure what figures the shadow minister is referring to, but there is nothing – nothing - by way of exposure in selling off hidden assets or bringing other things on to the book – no such thing whatsoever. He could be looking at some accrual figures.
We had this allegation the other day in terms of a blow-out: ‘You spent so much more over the first half of the financial year’. Governments always do. Governments invariably spend more over a financial year than they budgeted for at the outset. I gave the example that, if a school is blown away in a cyclone, are you going to sit there and say: ‘Sorry, you cannot have your school for 18 months because it is going to blow our budget out’? Governments also get more revenue throughout the year and that is why, when we put the budget down in May 2005, we predicted a $68.9m deficit. At the halfway mark, at the mid-year report - notwithstanding there has been increased expenditure and also increased revenue flows - Treasury are holding to a $68.2m deficit. That is pretty remarkable: to be able to sustain that progress throughout the year.
Last updated: 09 Aug 2016