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

 


Treasury block a bad look for Government

4 April 2012 MEDIA STATEMENT

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.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Urban Planning Report: Momentum Grows To Replace The RMA

A major new report from the Productivity Commission lays the foundation for action on the growing political consensus that the Resource Management Act and associated laws are failing both cities and the natural environment and need a complete rewrite.

Published this morning, the final “Better Urban Planning” report is the culmination of eight years of investigations ordered by the government into the causes of unaffordable housing and urban planning. More>>

 

Gordon Campbell: On The Labour/Greens Deal (And The NZDF)

If Labour and the Greens were hoping their Budget Responsibility Rules (BRR) agreement would foster an unlikely alliance then hey… mission accomplished! Because it isn’t every day that Sue Bradford, the CTU and Matthew Hooton speak with one voice, as happened yesterday. More>>

ALSO:

Until After The Election: Extension Of Report-Back Date For Havelock North Inquiry

Attorney-General Christopher Finlayson announced today that the report-back date for the independent Inquiry into Havelock North Drinking-Water has been extended at the request of the Inquiry’s Panel. More>>

ALSO:

Little Heading For Court: Apology Over Donation/Hotel Contract Claims Not Accepted

Today I want to publicly apologise unreservedly to Mr Hagaman for any hurt, embarrassment or adverse reflection on his reputation which may have resulted from my various media statements. I have offered that apology to the Hagamans. More>>

ALSO:

Biscuit Tin Of Democracy: World Heritage Site Protection, Ombudsman and Equal Pay Bills Drawn

On Thursday, 23 March 2017 three places are available on the Order Paper for the first reading of a Member’s bill. The ballot was held, and resulted in the following bills being drawn... More>>

ALSO:

Emissions Plan: NZ Needs More Science, More Trees, Fewer Beasts

A combination of technology breakthroughs, much more plantation forestry, and a big switch away from pastoral, particularly dairy farming, are identified as the key elements of any approach New Zealand takes to reducing its carbon emissions to a net zero level, according to a new report sponsored by the New Zealand chapter of GLOBE, a multi-party, global parliamentary grouping. More>>

ALSO:

"Backed To Win Seats": Labour Māori Seat MPs Won't Stand On List

The Labour Party is backing a request from its Māori seat MPs to stand as electorate MPs only, says Labour Leader Andrew Little. More>>

OutsKey: John Key's Valedictory Speech

I rise to address this House for the very last time. It has been a huge privilege to have served the people of Helensville as their member of Parliament, and, of course, the people of New Zealand as their Prime Minister. More>>

ALSO:

Productivity Commission: New Models Of Tertiary Education Are Coming

The report is a broad-ranging inquiry into how well New Zealand’s tertiary education system is set up to respond to emerging trends in technology and the internationalisation of education, and changes in the structure of the population, and the skills needed in the economy and society... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news