Herald on ACC blowout
The NZ Herald Editorial:
Nasty surprises for incoming prime ministers were meant to be eliminated by Ruth Richardson’s 1994 Fiscal Responsibility Act. The legislation obliged Governments to throw open the books before an election, exposing the Treasury’s best estimates and forecasts. The praiseworthiness of such transparency was quickly recognised at home and abroad. But, unfortunately, the law’s good intention has not been accompanied by scrupulous observance of its spirit and thrust. The latest transgressor is Labour’s ACC spokesman, David Parker, who insists former Cabinet ministers were not obliged to reveal a $1 billion hole in the Accident Compensation Corporation budget before the election.
And remember Labour also say that the $1 billion blowout is not significant.
Mr Parker, for his part, said Maryan Street denied knowing details of the shortfall until October, when she immediately told the Finance Minister at the time, Michael Cullen, and the Treasury. That happened after the Treasury had prepared its pre-election fiscal update. While this meant no specifics of the ACC’s problem could be included in that document, Mr Parker did not explain why these could not have been revealed to the public once they were known.
This, of course, should have been the case. The spirit of the fiscal responsibility law demands as much. An addendum could have been attached to the pre-election update or a public statement about the ACC budget released. Even before then, a fiscal risk flag could have been placed on the pre-election update, as is customary for unquantified sums in pre-Budget documents.
The Herald nails it in one. They could have still released the info or as a minimum flagged it in PREFU as an unquantified risk.
December 4th, 2008 at 7:04 am
But are we really surprised that something like this happened?
December 4th, 2008 at 7:43 am
Looks like Cullen stole from the ACC fund to help pay for Kiwirail. .
December 4th, 2008 at 7:51 am
Inconsequential, not in the public interest, just an error of judgement, move on nothing to see here…
Christ, even the editor leaves out inconvenient facts, letting Labour liars extend their lies for another few days to drive the lie home in people’s minds. Those criminals were told in MAY. That’s MAY. Not “…until OCTOBER” with no reference to how long they knew. MAY. Write it down. MAY.
December 4th, 2008 at 7:52 am
So how long a sentence do you get for breaking the Fiscal Responsibility Act?
December 4th, 2008 at 8:15 am
Labour just doesn’t get it do they …. still, a decade in the political wilderness should give them ample time to figure it out.
Gueez, Parker comes across as a prat and Street an arrogant b**** with little to be arrogant about.
December 4th, 2008 at 9:02 am
The Treasury writes the Prefu anyway, if they arent checking with the different arms of government over the liabilities ( which are small in this case) whats their day job then ?
December 4th, 2008 at 9:15 am
Labour just don’t learn. With faux self intropspection they muse about how they “lost” their heartland voter, yet here they are repeating the same mistakes that they pefected with the EFA, anti smacking, pledge card and all of Clarks misdemeanours.
Arrogant, out of touch and in denial.
Message to Labour. Shut up, take your medicine admit your mistakes and get back to being an effective political force rather than parading as an elite clique who can do no wrong and who act as if they are the only ones capable of running NZers lives.
December 4th, 2008 at 9:38 am
Street seems to have been operating in a very “Yes Minister” manner – knowing that there was a problem, but hoping that if she didn’t ask about the details, it would quietly go away. She has been grossly negligent towards her responsibilities as a taxpayer-paid Minister. Then again, she is a Helen Clark acolyte, so probably believes that such mundane things as the Fiscal Responsibility Act are below her!
http://keepingstock.blogspot.com/2008/12/maryan-street-minister-of-weasel-words.html
December 4th, 2008 at 9:48 am
Nothing will happen. As far as Labour is concerned hiding this was good politics. Remember they campaigned on Trust knowing about this so they out and out lied.
At least if there is an investigation it will leave no doubt in all thinking reasonable NZers that we along with the new govenment were shafted.
And if I hear once more what a marvelous PM HC was I will do violence to the person.
The measure of a PM who is good at the MMP government is one who managed to get a government together of the extreme left and right with out compromising the integrity of thier election promises within days as opposed to one who took weeks, alienated those that you would think were the natural allies (greens) and went with a corrupt self serving person. (WP)
December 4th, 2008 at 9:50 am
Miller you are full of it… a decade in the wilderness..!!
National went from 20% to 40% in 3years .
December 4th, 2008 at 10:33 am
Perhaps the more interesting questions will be the ones related to ACC’s $9-10 billion investment accounts.. the Dept of Labour’s audit last year mentions investments that had gone sour.
I wonder if ACC was robbing the investment account in the good years to pay for the non earners fund; and when the investments turned sour the panic was on to cover up?
JC
December 4th, 2008 at 10:37 am
We’ve just suffered through nine long years of left-wing dictators blaming everything from economic issues to the appalling weather (Note how the sun has shone continuously since the election result was confirmed) on those who have gone before.
I no longer want to hear about who is to blame or who did or didn’t tell someone else, I’ve had a gutsfull of that.
It is my firm hope that the National-led government will rise above that.
I want to read/hear what they are going to do to fix problems and ensure they don’t recur.
December 4th, 2008 at 10:41 am
Tinman
Stop being so fucking reasonable!
While I do want to hear how the Nat’s will fix things I also want to see them kick the socialist scum in the head while they are down, the more permanent damage they can do to the Labour party and the legacy of Klark the better.
December 4th, 2008 at 10:53 am
Street typifies the wimman that are where promoted by the Dear Leader and her inner circle of cohorts, a typical I know best, wind up, let them go, socialist shrill.
December 4th, 2008 at 2:29 pm
jacob v h …. listen Prat. I’ve had enough of your whinging. You are the lickspittlel mouthpiece for certainly the most arrogant and possibly the most corrupt government in living memory. If you think the deliberate subversion of the Public Finance Act is something to be proud of then keep it up old son and get used to the political wilderness.
Goff of Project Debacle fame
King of the Law of Common Sense fame (not to mention Hawkes Bay Health)
Cunliffe polishing up on Brutus
Cosgrove all bluff and bluster
Horomia inarticulate and not very bright
Mahuta there because of who she is rather than what she is
Street nuff said
Dyson the drinker
really impressive front bench there and guaranteed to inspire confidence not
Actually I think the getting back into power before 2018 bit was perhaps out of order … can we delete and substitute 2028 please.
December 4th, 2008 at 11:37 pm
Economic vandalism, the pricks should be locked up for criminal negligence.