Public Accounts and Estimates Committee: effective decision making for successful delivery of significant infrastructure projects – Delivered in Parliament 19 Feb 2014
Mr Pallas (Tarneit) — I make reference to the Public Accounts and Estimates Committee (PAEC) report on its inquiry into successful delivery of significant infrastructure projects and in particular chapter 2.3.5, ‘Potential conflict and confusion in the Department of Treasury and Finance’s roles’, which is on page 24. We have recently been made aware, by media releases and media coverage, of the Treasurer’s attempt to describe what he called a $19 billion black hole in Labor’s plans as Treasury costings, and the committee turned its attention to this issue. It is critically important that there be clarity regarding the role of Treasury and Finance and its ability to provide independent advice to government rather than engage in a political process.
It is unclear from an article in the Age whether these are Treasury costings, because the so-called detailed analysis released by the government was completed by — as the article says — coalition political staff in the Treasurer’s private office.
Mr Pallas — The PAEC report on the 2013-14 budget estimates on page 111 in part 1, notes that level crossings were mentioned in the hearings with the minister, who said:
- While the cost of grade separations are high — usually around $100 million to $200 million each, depending on complexity — the benefits in terms of safety and reducing congestion are considerable’.
The ACTING SPEAKER (Ms Ryall) — Order! Members are permitted to talk about one report only in their contributions. The member has now moved onto a second report. I ask him to adhere to the first report that he was referring to.
Mr Pallas — Well spotted. Back on the committee report on the inquiry into successful delivery of infrastructure projects, that report also dealt with the appropriate and effective delivery of those projects and made clear reference to the fact that government should have clear roles for Treasury and Finance and that those roles should be honoured and maintained. We saw at the last federal election where efforts to engage with Treasury and Finance in a political debate were rejected by the federal Department of Treasury, a role that the committee in its implicit statement as to the need for the separation of those responsibilities was very clear about. We take the view that that is an appropriate way by which Treasury and Finance should conduct itself.
We have seen an incorrect representation of the role and the material produced by the Treasurer in the public domain, and that goes directly to the heart of that committee report.
That committee report made it clear that there should be no confusion between the role of Treasury and Finance, project management and costing, real project management as opposed to those projects that are a part of a broader political debate. Indeed in the federal government forum, in the context of an opposition coalition, we saw federal Treasury take a stand in that respect. That is the point; you either clarify whether Treasury is part of this process at costing real projects, or you are engaging in the costing of political projects, and that is in itself a political point.
The committee was very clear about the need for clear and effective costings of policies. We know from the PAEC report that the government has consistently blown out its own costings. In a consistent approach with the PAEC report we ask the government to publicly release the so-called costings of Labor’s policy proposals, which the Deputy Premier told the Parliament today were Treasury costings and which the Treasurer has presented on social media as Treasury costings. Not to do so would be further evidence of a defining characteristic of this government: a complete lack of integrity.