Mr KIELY - 2001-10-25
I refer the minister to the fact that the former CLP Treasurer told Territorians, in statements to this House and in his current budget, that the previous CLP government increased money allocated to health by 2.5% in the current budget. How was this apparent increase achieved?
ANSWER
Madam Speaker, I thank the honourable member for his question. When I first became Minister for Health, Family and Children’s Services 59 days ago, I spent some time considering the budgets and the general financial situation in my portfolio. I soon discovered that there were large discrepancies in the figures in the former government’s budget. I asked my Chief Executive Officer to provide me with a response as to why there was such a large discrepancy in the figures of the former government’s budget, which he did, and in the form of a memorandum.
It is extraordinary that I read such a memorandum in this House, but I do so as its contents are extraordinary and demonstrate the repeated abdication of responsibility by the honourable members involved. I will now read from this memo directly. It is a memorandum to myself from the Territory Health Services CEO:
Attached, as requested, is an explanation of THS’ budget situation for 2000-01 and 2001-02 as compared to that presented
in the last budget papers.
In summary, there was an artificial reduction of $8m in THS’ 2000-01 budget in order that the 2001-02 budget figure could be
presented falsely as a 2.5% increase. In reality, THS’ 2001-02 budget represents a reduction on the final 2000-01 approved
budget.
The attached papers also demonstrate that in reality THS’ final actual expenditure for 2000-01 was contained within the approved
budget.
My first knowledge of this situation was when I was in Sydney …
This is the CEO speaking.
… on official business on 9 May 2001. I received a telephone call from the Under Treasurer, Ken Clarke, who informed me
the Treasurer intended to adjust THS’ final budget figure for 2000-01 so that the following year’s budget could artificially be
shown as providing an increase at least equivalent to the CPI.
Mr Clarke informed me that this should be kept confidential within THS, and it was agreed …
There is a name mentioned here, a public servant, but this is not about public servants, so I will not mention that person’s name.
… would liaise with designated Treasury staff on the necessary adjustments to the budget figures.
On receipt of this message I expressed considerable concern to Mr Clarke, and informed him that I would need to discuss this
with my minister.
I rang Minister Dunham and expressed my alarm at this proposed deception. I advised him that, in my view, this arrangement
would undoubtedly be discovered in the due course by the Auditor-General and would reflect poorly on THS and the minister.
Indeed it is coming out now.
In addition, I expressed concern that, as a consequence of these artificial adjustments, THS would be seen to be exceeding its
approved budget by $8m when this was demonstrably not the case.
Minister Dunham expressed serious alarm at the information I conveyed to him and he indicated he wished to be kept informed
of all developments.
The minister was continually kept informed as the budget process continued, but there was no change in the decision to artificially
reduce by $8m the 2000-01 budget.
It is signed by my CEO, Paul Bartholomew. This document, which I will table, establishes that the former Treasurer, the member for Katherine, and the former Health Minister, the member for Drysdale, were involved in unprecedented conduct in providing information in the budget, and to the people of the Northern Territory. I table the document, Madam Speaker.
ANSWER
Madam Speaker, I thank the honourable member for his question. When I first became Minister for Health, Family and Children’s Services 59 days ago, I spent some time considering the budgets and the general financial situation in my portfolio. I soon discovered that there were large discrepancies in the figures in the former government’s budget. I asked my Chief Executive Officer to provide me with a response as to why there was such a large discrepancy in the figures of the former government’s budget, which he did, and in the form of a memorandum.
It is extraordinary that I read such a memorandum in this House, but I do so as its contents are extraordinary and demonstrate the repeated abdication of responsibility by the honourable members involved. I will now read from this memo directly. It is a memorandum to myself from the Territory Health Services CEO:
Attached, as requested, is an explanation of THS’ budget situation for 2000-01 and 2001-02 as compared to that presented
in the last budget papers.
In summary, there was an artificial reduction of $8m in THS’ 2000-01 budget in order that the 2001-02 budget figure could be
presented falsely as a 2.5% increase. In reality, THS’ 2001-02 budget represents a reduction on the final 2000-01 approved
budget.
The attached papers also demonstrate that in reality THS’ final actual expenditure for 2000-01 was contained within the approved
budget.
My first knowledge of this situation was when I was in Sydney …
This is the CEO speaking.
… on official business on 9 May 2001. I received a telephone call from the Under Treasurer, Ken Clarke, who informed me
the Treasurer intended to adjust THS’ final budget figure for 2000-01 so that the following year’s budget could artificially be
shown as providing an increase at least equivalent to the CPI.
Mr Clarke informed me that this should be kept confidential within THS, and it was agreed …
There is a name mentioned here, a public servant, but this is not about public servants, so I will not mention that person’s name.
… would liaise with designated Treasury staff on the necessary adjustments to the budget figures.
On receipt of this message I expressed considerable concern to Mr Clarke, and informed him that I would need to discuss this
with my minister.
I rang Minister Dunham and expressed my alarm at this proposed deception. I advised him that, in my view, this arrangement
would undoubtedly be discovered in the due course by the Auditor-General and would reflect poorly on THS and the minister.
Indeed it is coming out now.
In addition, I expressed concern that, as a consequence of these artificial adjustments, THS would be seen to be exceeding its
approved budget by $8m when this was demonstrably not the case.
Minister Dunham expressed serious alarm at the information I conveyed to him and he indicated he wished to be kept informed
of all developments.
The minister was continually kept informed as the budget process continued, but there was no change in the decision to artificially
reduce by $8m the 2000-01 budget.
It is signed by my CEO, Paul Bartholomew. This document, which I will table, establishes that the former Treasurer, the member for Katherine, and the former Health Minister, the member for Drysdale, were involved in unprecedented conduct in providing information in the budget, and to the people of the Northern Territory. I table the document, Madam Speaker.
Last updated: 09 Aug 2016