Page 3679 - Week 10 - Wednesday, 26 August 2009

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The Chief Minister says, “No, no; there is no basis or suggestion of finding savings and it does not do that.” The report actually reports against it. Somebody should take Ernst & Young to task for overstepping what they were told to do!

There is a recommendation on how to find savings. It even proposes a long-term strategy for cost savings, over on page 9. There is a list of options on ways to make the savings. But if you then get into the body of the report, there is actually a chapter, chapter 13, called “Identify Possible Cost Savings”. It is there in the report.

I have to go back to what the Chief Minister told the estimates committee. He said:

No. The department commissioned Ernst & Young for advice in relation to financial management and strategic planning, but the report was not commissioned on the basis of making suggestions or finding savings and it does not provide that.

I wonder if the Chief Minister actually read the report before he misled the estimates committee—because that is what he did, Mr Speaker. There on page 87, chapter 13—“Identify Possible Cost Savings”. It goes through and analyses the spending. Then we get to page 91. It actually lists the savings initiatives. Remember that the Chief Minister said, “No, it does not provide that.”

Chief Minister, you should open page 91. Page 91 lists the saving initiatives. Let us see. Consolidation of administrative practices will save you 10 to 15 per cent, potentially $1 million to $1.5 million. Parallel review of procurement strategies will save you one to two per cent of supplies in the services budget, $2.25 million up to $4.5 million. No 3, “Review of services provided which can be delivered through alternative business models”, will save you 0.5 to 1 per cent of total expenses, $2.05 million up to $4.1 million.

If you add them up, what number does it magically come to? Remember that we are not looking for $10 million worth of savings. On the low side, if we give you $5.3 million, if you garner the full savings as outlined under “Savings initiatives” as part of the terms of reference that the Chief Minister denied existed to the estimates committee, it actually saves $10.1 million—$10 million. They found the savings that the Chief Minister denied—that the Chief Minister said to the estimates committee were not the objective of the report.

Perhaps we will look at this a little bit further. It is amazing. I will read it a third time. He was asked:

Have Ernst & Young given you their report and have $10 million worth of savings been found?

He said:

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