In a two hour hearing before Parliament’s Economic & Finance Committee the Auditor-General has foreshadowed increased reporting on matters of specific importance to Parliament this year and raised further concerns about the Labor Government’s ability to deliver key projects and manage its expenses.
“The Auditor-General confirmed that the cost for the public sector to borrow and build the super schools project was less than the Public Private Partnership (PPP) finance model the Rann government chose.”
“This raises concerns about whether the same decision will be made regarding the $1.7 billion rail yards hospital as the Auditor-General confirmed the government was locked into a PPP model even if it cost less to borrow and build directly” Shadow Minister for Economic Development Martin Hamilton-Smith said.
“The Auditor also confirmed concerns raised in his report about SA Water Corporations ability to manage tenders and contracts. In light of Audits criticisms can SA Water deliver the $1.8 billion desalination plant on time and on budget and then run it efficiently?
Other issues raised include;
• Only 400 of 1,200 TVSP (voluntary separations) from the public service had been accepted at the time of audit
• Audit was reviewing the $30 million shortfall in meeting Shared Services savings targets and would report back to Parliament with an updated figure
• Concerns about the budget effect of a loss of windfall revenues from the GFC Commonwealth financial stimulus, property taxes and GST.
• Failure to meet savings targets
• WorkCover Corporation faces some very serious and daunting challenges which will require close scrutiny
The Auditor-General indicated that after the election when Parliament resumes he would be tabling special reports into government efficiency and probity, project management, PPP’s and government funded advertising.
“This new approach to additional reporting by the Auditor-General is welcomed” Mr Hamilton-Smith said.
“The government’s failure to manage its expenses, timely Commonwealth GFC bailouts and audit concerns about contract and project management raise serious doubts about the Rann Labor Government’s ability to deliver its promises.”