Page 3494 - Week 08 - Thursday, 18 August 2011
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
46 per cent. This is not a big gap in terms of the time, and of course the consolidateds are to 30 June, so they do not take into account the recent tumble in the markets. I would certainly be asking the minister how, when your own chart on page 11 of your consolidated financial report for the last five quarters has the superannuation liabilities well above $4.5 billion, the budget contains the figure of $4.321 billion. It is a difference of $557 million, members, and it is a significant number.
Mr Barr: Presumably it would have been an actuarial reassessment. I will take some advice on that but I presume that is—
MR SMYTH: The minister proffers a possible answer, but if you look at the data presented, I am not sure that it will cover that answer. The interesting thing is that, if we go back to the mid-year financial review which was tabled in this place on 15 February this year, the liabilities in the mid-year review were $4.281 billion, with coverage therefore of 52 per cent, but the quarterly financials which were also tabled that day have it at $4.743 billion and only 46 per cent coverage. So on the same day the government has proffered two numbers that are almost $500 million apart. You actually have to ask how accurate are the figures that this government tables when on the same day you can have two different numbers almost half a billion dollars apart. It is very curious.
The quarterly financials for September 2010 tabled in this place on 15 November last year had it at $4.6 billion. But if you look at the chart, as I have said, it is quite clear that some of these numbers are wrong. The Treasurer said he would take it on notice, and I thank him for that. He needs to come back and explain those differences.
I am extremely concerned at the differences in the extent of liabilities as represented by these financial reports. They are not explained by what has happened in the last couple of weeks. This was a much calmer period in the markets when those numbers were tabled. We need to know that the extent of liabilities now varies between 45 and 53 per cent on the same day and over a matter of months. You need to remember, members, that the funding used to be well over 60 per cent.
The swings in the proportion of liabilities that are funded here are as bad as some of the swings in the Chicago VIX index, which is the index of volatility. So we need to question how the liabilities are being valued. Alternatively, we question how these liabilities are being reported and why such major differences in the values of the superannuation provision account liabilities are being reported by this government.
I do appreciate the minister making the statement, and I appreciate members giving me the opportunity to respond.
What the minister did not perhaps mention was the need to diversify the ACT’s economy. I notice the rhetoric has changed slightly in the last couple of days. I was lucky enough to go to the Canberra Business Council’s lunch on Friday. The subject on the invitation was that the Chief Minister was going to present her vision for the business community in the future. There was not much vision. There was a lot of repetition of material in the budget.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video