Page 3399 - Week 08 - Tuesday, 17 August 2010
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Mr Smyth: Perhaps you might move that the paper be noted.
MS GALLAGHER: I move:
That the paper be noted.
MR SMYTH (Brindabella) (3.34): I am pleased to see that the Treasurer has not forgotten to table this statement this year, after having to be reminded by me last year of the need for her to comply with the FMA. I think a quick glance at the paper reveals that, contrary to the claims from the Treasurer that the ACT Labor government has exercised anything like cost control, if proper cost control had been exercised, none of the Treasurer’s advance would have been utilised except for those amounts committed to things like international disasters and like matters.
Ms Gallagher does not seem to understand that the Treasurer’s advance is intended for urgent and unforeseen matters, not for matters where an agency is unable to keep within its budget. Rather than crowing about cost control, as she did in this place on 24 June 2010, she should be seeking an explanation from departments like TAMS for overspending by $7 million, JACS for overspending by $300,000, Education and Training for overspending by $7 million, Disability, Housing and Community Services for overspending by nearly $1 million, the Chief Minister’s Department for overspending by $600,000, and Land and Property Services for overspending by $500,000.
So, sorry, Treasurer, these outcomes do not demonstrate the government’s ability to control costs, as you claimed. They do not represent a strong track record on financial management. They do represent a failure to manage budgets—nothing more and nothing less.
As I read through the list of allocations from the Treasurer’s advance, I see funds to maintain services, funds for increased superannuation costs, funds for operational costs, funds for wage negotiations and funds for software upgrades. The question is: why were there not sufficient funds in relevant budgets to fund these activities? Alternatively, why was there not sufficient flexibility in agency financial management processes to fund these activities within their budgets?
Treasurer, you simply fail to understand what the purpose of the Treasurer’s advance really is. It should not be used to provide funds for what might be described as normal agency activities.
Question resolved in the affirmative.
Financial Management Act—instrument
Paper and statement by minister
MS GALLAGHER (Molonglo–Deputy Chief Minister, Treasurer, Minister for Health and Minister for Industrial Relations): For the information of members, I present the following paper:
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