... goes to Nick Smith and Craig Foss for their slap-down of David Parker, Maryan Street and pretty much the entire Labour cabinet during this series of supplementaries and answers yesterday:
Craig Foss: What advice has the Minister received on the accuracy of a statement made by the Hon David Parker in respect of the non-earners account blowout not being in the Pre-election Economic and Fiscal Update, where he says: “Papers show that Ministers acted appropriately throughout, as the money needed had not been quantified until the election period.”?
Hon Dr NICK SMITH: The money needed was clearly identified in a report to the former Minister on 14 August, based on a PricewaterhouseCoopers valuation. A further 60-page technical report was completed by the ACC on 22 August, which confirmed those figures. The election was not called until 12 September, and the Pre-election Economic and Fiscal Update closing-off date was 8 September, after the previous Government had that information.
Craig Foss: Is the Minister aware of the Cabinet minute of 10 December 2007 that noted increased costs in the non-earners account and required the then Minister to report back on a clear funding policy before the levy-setting process began in August 2008; if so, did that occur?
Hon Dr NICK SMITH: Yes, there was a very clear Cabinet minute last December requiring the former Minister to report back on funding issues in the non-earners account. That did not occur, and there is no explanation as to why it did not occur.
Craig Foss: Has the Minister received any advice about the accuracy of the statement issued by the former Labour Minister for ACC as to why the blowout was not included in the Pre-election Economic and Fiscal Update?
Hon Dr NICK SMITH: Yes. The statement is inaccurate in three respects. It states the first advice the former Minister received was on 14 August, yet the chief executive of the ACC has advised me that the then Minister was given a heads-up in May. The statement also claims that the paper, dated 14 August, states: “approximately $300 million per annum 2009-2013;”. The paper never uses the word “approximately”, but notes that the change in baselines was $305.654 million and gives equal accuracy in subsequent years. Contrary also to Ms Street’s statement, it also specifically notes a request for increased appropriations in this financial year—something she did not disclose.
Craig Foss: What advice has the Minister received on the accuracy of the claim made by the Hon David Parker that it would have been constitutionally inappropriate for the Labour Government to address this urgent problem in the non-earners account during the election period?
Hon Dr NICK SMITH: The statement is also incorrect. That additional appropriation was not from any change of policy but simply to maintain an existing level of accident compensation cover. I find it strange also that Labour would make that claim, when it seemed to be no problem at all for it to promise, in the middle of an election campaign, interest-free student loans, big increases in Working for Families, and many other initiatives. It seems that if it is good news, Labour can do it; if it is bad news, it hides it.
Well done gentlemen. If they were a WWE team, we could perhaps call them The Eviscerators! And Keeping Stock hopes that there might be some knife-sharpening going on at the Serious Fraud Office as well when this matter is considered in the context of the Fiscal Responsibility Act.