The Treasurer’s annual financial report for 2008/09 released last week confirmed that even though both the State and National economies were ravaged by the global financial crisis, the State Government still managed to spend $340m. more than its original budget, including an increase of nearly $210m. in employee expenses and a blowout of nearly $20m. in consultancies to finish with an operational deficit of nearly $80m.
The Government’s profliagate record of spending even in such a challenging year raises a number of concerns about the Government’s capacity to manage the budget and their claims to economic management, and importantly raises some serious questions that need answering by the Treasurer.
· Have revenues this financial year recovered so dramatically that the recent multi-million dolar announcements by the Premier can be afforded without blowing this year’s budget as badly as the last?
· Where is the money coming from for the $4m. announced last week for the Tourism industry?
· What about the $5m. being spent on upgrading teachers laptops announced three weeks ago?
· How has the $34m. that has been committed to buy the Railways back next month affected the bottom line? and;
· What savings has the Government achieved in regards to its savings program and employee management strategies announced in the budget?
Furthermore, this extra spending that was not included in the budget brought down only four months ago means that it is now an absolute imperative that the Treasurer provide a quarterly report that includes details on both revenues and expenses for the year to date.
We will continue to hold this Government to account and will continue to demand answers to the these most basic questions regarding financial accountability.
The budget is not a magic pudding and the Treasurer must stop treating Tasmanians with contempt and begin providing answers.
Peter Gutwein MP Shadow Treasurer
