Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Treasury block a bad look for Government


Treasury block a bad look for Government

At the same time the Government was announcing more red ink in its Crown accounts, National Party MPs were block-voting to stop Treasury being called in front of the Finance and Expenditure Committee, Labour’s Finance spokesperson David Parker says.

“The Finance and Expenditure Committee (FEC) has been blocked from following up with Treasury its mishandling of the Crown guarantee of finance company deposits, despite the Auditor-General’s findings showing it needed scrutiny.

“The Auditor-General’s advice to the Committee last week showed that during the first five months of the guarantee scheme Treasury did not monitor whether finance companies were engaging in more risky lending on the back of the Crown guarantee,” David Parker said.

“The Minister of Finance also confirmed in Parliament last week that Treasury did not even once report to him in writing during this period on the rapid growth in the Crown’s risk.

“The Auditor-General found that South Canterbury Finance increased its guaranteed deposits by an astounding 25 per cent in the four months after joining the guarantee scheme.

“The funds were used for increasingly risky new loans, including capitalised interest and second mortgages, which added to the Crown’s losses.

Treasury’s excuse that it did not want to interfere in financial markets was not accepted by the Auditor-General, who pointed out to the FEC that the grant of the guarantee was already a substantial interference.

“The estimated net loss to taxpayers under the Crown Guarantee Scheme is $500 million. The gross loss is even higher. A substantial part of that loss could have been avoided.

“The refusal of Government members to allow the FEC to take Treasury to task, or hold it to account in light of the Auditor-General’s criticisms, is clearly wrong.

“We should not pretend select committees perform this role when the Government members block it from doing so.

“The Committee is not even meeting during the next two or three weeks, so obviously has the time available to question Treasury

“Mismanagement of Government finances totalling hundreds of millions of dollars should be looked in to. It is one of the reasons why the latest Crown accounts are so poor. This is more than nonchalance from Treasury. It is costly mismanagement.

“It is of course embarrassing to a Government which pretends to be a good manager of the economy,” David Parker said.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Schools: Achievement-Based Funding Would Be A Disaster

The Education Minister’s speech to the PPTA Conference raising the spectre of achievement data driving a new funding system would be disastrous, says NZEI Te Riu Roa. More>>

  • Video Out-Link - PPTA Annual Conference 2015 on Livestream (Q+A dicussion suggests funding would be directed to less successful schools.)

  • ALSO:

    ECE Report:

    Key In NY: Prime Minister Addresses United Nations

    Prime Minister John Key has addressed the United Nations General Assembly in New York, focusing on a call for action in Syria and on other conflicts, reform of the veto process and on the UN’s Sustainable Development Goals. More>>.


    Gordon Campbell: On The Lack Of Accountability Over Philip Smith

    In New Zealand, accountability is an exotic creature rarely glimpsed at ministerial level, or among senior management. The flight to Rio by the paedophile /murderer Philip John Smith/Traynor is no exception. More>>


    More On Corrections

    Gordon Campbell: On Putin’s Diplomatic Coup Over Syria

    There’s a simple historical precedent for what is occurring in Syria. During WWII, the Allies joined forces with a known butcher and tyrant – Joseph Stalin of the Soviet Union – in order to defeat a greater evil, Nazi Germany… More>>


    Key 'Didn't Know': Brownlee Seeks Pandas In China

    While Defence Minister Gerry Brownlee is in China pushing a taxpayer funded deal to bring two pandas to New Zealand, the country’s military look set to be hit with a pay freeze, Opposition Leader Andrew Little says. More>>


    Scoop Business: GCSB Willing To Extend Cyber-Attack Programme To Local ISPs

    The Government Communications Security Bureau’s ‘Cortex’ cyber-security programme has been successful in helping identify and mitigate a series of cyber attacks since its introduction and an extension to cover local internet service providers is still on the cards... More>>


    Get More From Scoop



    Search Scoop  
    Powered by Vodafone
    NZ independent news