Footnotes

Chapter 1 - Introduction

[1]        For the purposes of this report, reference to states should be interpreted as a reference to states and territories.

[2]        Journals of the Senate, 17 September 2008, p. 865.

 

Chapter 2 - Commonwealth-state and territory fiscal relations

[1]        This chapter draws heavily on Specific purpose payments and the Australian federal system, Mr Scott Bennett and Mr Richard Webb, Parliamentary Library Research Paper, January 2008, and on Developments in Commonwealth-state financial relations since 2000–01, Mr Richard Webb, Parliamentary Library Research Brief, March 2006.

[2]        Commonwealth of Australian Constitution Act, ss. 51, 52, 114 and 115.

[3]        Dr Vassiliki Koutsogeorgopoulou, Fiscal relations across levels of government in Australia, Organisation for Economic Co-operation and Development, Economics Department Working Papers no. 541, 2007, p. 8, www.olis.oecd.org/olis/2007doc.nsf/LinkTo/NT000009EA/$FILE/JT03220724.PDF (accessed 4 July 2008).

[4]        A copy of the agreement can be obtained at: www.coag.gov.au/ig_agreements/reform_of_comm-state_financial_relations.htm (accessed 4 July 2008).

[5]        This undertaking was originally scheduled to cease on 30 June 2006. The submission from Commonwealth Treasury (submission 25, p. 9) now lists cessation at 30 June 2009.

[6]        These included bed taxes, financial institutions duty, stamp duty on marketable securities, and debits tax.

[7]        These included duties on business conveyances, non-quotable market securities, leases, mortgages, bonds, debentures, credit arrangements, rental agreements, cheques, bills of exchange and promissory notes.

[8]        Australian Government, Budget Paper no. 3, Federal financial relations, 2007–08, May 2008, p. 4.

[9]        Dr Vassiliki Koutsogeorgopoulou, Fiscal relations across levels of government in Australia, Organisation for Economic Co-operation and Development, Economics Department Working Papers no. 541, 2007.

[10]      Professor Russell Mathews, as quoted in Specific purpose payments and the Australian federal system, Scott Bennett and Richard Webb, Parliamentary Library Research Paper, January 2008, p. 5.

[11]      Professor Russell Mathews, as quoted in Specific purpose payments and the Australian federal system, Scott Bennett and Richard Webb, Parliamentary Library Research Paper, January 2008, p. 5.

[12]      Patricia Karvelas and Adam Cresswell, 'States ask Canberra to control hospitals', The Australian, 2 June 2006. www.theaustralian.news.com.au/story/0,20867,19335557-23289,00.html (accessed 8 September 2008).

[13]      www.coag.gov.au/ig_agreements/reform_of_comm-state_financial_relations.htm  (accessed 4 July 2008).

[14]      Professor Ross Garnaut and Dr Vince FitzGerald, Review of Commonwealth-State funding, Final Report, August 2002, p. 71.

[15]      Department of the Treasury, Architecture of Australia’s tax and transfer system, August 2008, p. 301.

[16]      Dr Vassiliki Koutsogeorgopoulou, Fiscal relations across levels of government in Australia, Organisation for Economic Co-operation and Development, Economics Department Working Papers no. 541, 2007, p. 5.

[17]      Mr Richard Webb, Developments in Commonwealth-state financial relations since 2000–01, Research Brief no. 11, 2006, Parliamentary Library, p. 2.

[18]      Dr Vassiliki Koutsogeorgopoulou, Fiscal relations across levels of government in Australia,  Organisation for Economic Co-operation and Development, Economics Department Working Papers no. 541, 2007, p. 6.

[19]      See for example: Victorian Employer's Chamber of Commerce and Industry,               Horizontal Fiscal Equalisation: The business plan to make GST distributions transparent, efficient and equitable, 2006.

[20]      Department of the Treasury, Submission 25, p. 10.

[21]      Council of Australian Governments' Meeting, Communiqué, 26 March 2008, p. 3, www.coag.gov.au/meetings/260308/docs/communique20080326.pdf (accessed 21 July 2008). See also 2008–09 Budget Paper No. 3, p. 6.

[22]      Australian National Audit Office, Planned Audit Report Programme, July 2008, pp 69–70.

[23]      Dr Vassiliki Koutsogeorgopoulou, Fiscal relations across levels of government in Australia, Organisation for Economic Co-operation and Development, Economics Department Working Papers no. 541, 2007, p.1.

[24]      Business Council of Australia, Submission 16, Attachment C, pp 20 and 127.

[25]      Business Council of Australia, Submission 16, Attachment C, p. 127.

[26]      Business Council of Australia, Submission 16, Attachment C, p. 169.

[27]      Business Council of Australia, Submission 16, Attachment C, p. 166.

[28]      The figure $1.8 billion is an aggregate of $861 million and $931 million from the Business Council of Australia, Submission 16, Attachment C, p. 127.

 

Chapter 3 - State and territory bottom lines and debt levels

[1]        Much of the information in this chapter, including graphs relating to the fiscal position and debt levels of states was drawn from The many bottom lines of Government, Client Memorandum, Adrian Makeham-Kirchner, Parliamentary Library, July 2008.

[2]        Businesses owned by governments are known by various names, including, Government-owned Corporations (GOCs), Government-Trading Organisations (GTOs), Public Trading Enterprises (PTEs) and Government Business Enterprises (GBEs). For simplicity, the last of these will be used in this report.

[3]        AASB/IASB has been the reporting standard for businesses. Many government agencies have reported on this standard for some time. However, the aggregated government position really only started to move towards AASB reporting when governments adopted accrual accounting for whole-of-government reporting. In recent years the Board has incorporated standards within the AASB rules that relate specifically to government transactions.

[4]        GFS is a system built, initially, through the International Monetary Fund (IMF) to enable consistent measurement of government finances on an economics standard. The marginal difference to other standards is that the end goal of the reporting is to measure the impact of government on the economy, not just the internal performance management of government.

[5]        Detailed explanations are available at www.treasury.gov.au/documents/186/HTML/docshell.asp?URL=accrualmeasures.asp.

[6]        Mr Derek Bazen, Analyst, State Finance and Reporting Unit, Department of the Treasury, Committee Hansard, 25 July 2008, p. 79.

[7]        Available at www.treasury.gov.au/documents/1371/PDF/2008_UPF.pdf

[8]        Mr Derek Bazen, Analyst, State Finance and Reporting Unit, Department of the Treasury, Committee Hansard, 25 July 2008, pp 78–79.

[9]        The committee notes similar sentiments expressed by submitters. See, for example, Associate Professor Graeme Wines, personal capacity, Submission 17, p. 11.

[10]      Associate Professor Graeme Wines, personal capacity, Submission 17, p. 13.

[11]      Mr Henry Ergas, personal capacity, Committee Hansard, 25 July 2008, p. 37.

[12]      The Library warns that volatility around 2006–07 may be more an issue of recording than actual changes in balance, as the data to 2006–07 is drawn from ABS data, while 2007–08 is drawn from the respective Uniform Presentation Framework section of the relevant state or territory Budget Paper. Adrian Makeham-Kirchner, The many bottom lines of Government, Client Memorandum, Parliamentary Library, July 2008, p. 5. All data is in nominal (current) dollars, not accounting for any inflationary impact, and the left hand chart relates to the GGS and the right hand chart relates to PNFC. NOB: Net Operating Balance. FB: Fiscal Balance. UCB: Underlying Cash Balance.

[13]      Department of the Treasury, Submission 25, p. 1.

[14]      Department of the Treasury, Submission 25, p. 2.

[15]      The Net Debt figures for the ACT General Government Sector include superannuation related investments.

[16]      Department of the Treasury, Submission 25, p. 5.

[17]      All data is in nominal (current) dollars, not accounting for any inflationary impact. Net worth figures are generally not available from the ABS, while only some forecast figures are available. The left hand chart relates to the GGS and the right hand chart relates to PNFC sector. Once again, volatility around 2006–07 may be more an issue of recording than actual changes in balance. In most jurisdictions there appears to be a level shift at the end of 2006–07, which implies a regime shift between the ABS and jurisdiction reporting. ND: Net debt. NW: Net worth. NFW: Net financial worth.

[18]      Department of the Treasury, Submission 25, p. 5.

[19]      Department of the Treasury, Submission 25, p. 5. Note these figures are based on 2007–08 State Budget papers.

[20]      Department of the Treasury, Submission 25, p. 5.

 

Chapter 4 - Financial Management

[1]        Department of the Treasury, Submission 25, p. 5.

[2]        Department of the Treasury, Submission 25, p. 5.

[3]        Mr Henry Ergas, personal capacity, Committee Hansard, 25 July 2008, pp 44–45.

[4]        See, for example, Mr Kim Wells, Shadow Treasurer for Victoria, Submission 3, p. 3.

[5]        Dr Bruce Flegg, Shadow Treasurer for Queensland, Committee Hansard, 17 July 2008, pp 1–2.

[6]        Australian Industry Group, Submission 21, p. 1.

[7]        Mr Tony McDonald, General Manager, Department of the Treasury, Committee Hansard, 25 July 2008, p. 74.

[8]        Mr Henry Ergas, personal capacity, Committee Hansard, 25 July 2008, p. 43.

[9]        Mr Henry Ergas, personal capacity, Committee Hansard, 25 July 2008, p. 38.

[10]      The Hon Wayne Swan, MP, Treasurer of the Commonwealth of Australia,
'Investing In a Modern Federation', Press release 037, 13 May 2008, www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2008/037.htm&pageID=003&min=wms&Year=&DocType=0 (accessed 4 September 2008).

[11]      Mr Richard Webb, The Australian Loan Council, Parliamentary Library Research Note no 43, 2001–02, 18 June 2002, p.1.

[12]      Mr Richard Webb, The Australian Loan Council, Parliamentary Library Research Note no 43, 2001–02, 18 June 2002, p. 1.  

[13]      Mr Richard Webb, The Australian Loan Council, Parliamentary Library Research Note no 43, 2001–02, 18 June 2002, p. 2.

[14]      Mr Geoffrey Anderson, private capacity, Committee Hansard, 27 March 2008, pp 52–53.

[15]      Mr Richard Webb, The Australian Loan Council, Parliamentary Library Research Note no 43, 2001–02, 18 June 2002, p. 2.

[16]      Mr Geoffrey Anderson, Submission 19, Attachment C, p. 9. The Commonwealth Budget Paper referred to is Budget Paper No 4: Commonwealth Financial Relations with other Levels of Government 1993–1994 PP90 of 1993. p. 65.

[17]      Loan Council mid-1990s, Client Memorandum, Richard Webb, Parliamentary Library, 4 September 2008.

[18]      Mr Richard Webb, The Australian Loan Council, Parliamentary Library Research Note no 43, 2001–02, 18 June 2002, p. 2.

[19]      Mr Geoffrey Anderson, Submission 19, Attachment C, p. 2.

[20]      Mr Geoffrey Anderson, private capacity, Committee Hansard, 27 March 2008, p. 54.

[21]      See as an example, Budget Paper No. 3: Australia's Federal Relations 2008–09, p. 85.

[22]      Mr Derek Bazen, Analyst, State Finances Unit, Commonwealth State Relations, Department of the Treasury, Committee Hansard, 25 July 2008, p. 82.

[23]      Department of the Treasury, Submission 25, p. 7.

[24]      Australian Bureau of Statistics, Wage and Salary Earners, Public Sector, Australia, June 2007. www.abs.gov.au/AUSSTATS/abs@.nsf/ProductsbyCatalogue/C976CA0DFCB18A1BCA25707C007B02D4?OpenDocument (accessed 5 September 2008).

[25]      Mr Henry Ergas, personal capacity, Submission 42, pp 5–6.

[26]      The LPI is also referred to as the Wage Price Index (WPI).

[27]      Dr Tony Richards, Head of Economic Analysis, Reserve Bank of Australia, Committee Hansard, 24 July 2008, p. 32.

[28]      Mr Henry Ergas, personal capacity, Committee Hansard, 25 July 2008, p. 51.

[29]      Mr Henry Ergas, personal capacity, Committee Hansard, 25 July 2008, p. 51. See also evidence from Ms Vicky Chapman MP, Deputy Leader of the Opposition for South Australia, Committee Hansard, 27 March 2008, p. 17.

[30]      Australian Institute of Health and Welfare, Australian hospital statistics 2006-07, Health Services Series No. 31, May 2008, p. 107,
www.aihw.gov.au/publications/hse/ahs06-07/ahs06-07-c05.pdf (accessed 12 September 2008).

[31]      Australian Capital Territory Department of Health, ACT Health Annual Report 2005–06, p. 72; Northern Territory Department of Health and Community Services, Annual Report 2006–07, p. 117; Tasmania Department of Health and Human Services, Annual Report 2005–06, p. 15.

[32]      Ministerial Council on Employment, Education and Youth Affairs, National Report on Schooling in Australia, Preliminary Paper: National Benchmark Results: Reading, Writing and Numeracy, Years 3, 5 and 7, p. 25, www.curriculum.edu.au/verve/_resources/ANR2007Bmrks-Layout_FINAL.pdf (accessed 9 September 2008).

[33]      The Hon Ms Julie Bishop, Minister for Education, Science and Training,
House of Representatives Hansard, 13 February 2007, p. 20.

[34]      Dr Steve Thomas MLA, Shadow Treasurer for Western Australia, Committee Hansard, 12 June 2008, p. 10.

[35]      Mr Mike Baird MP, Shadow Finance Minister for New South Wales, Committee Hansard, 24 July 2008, p. 3.

[36]      Mr Kim Wells MP, Shadow Treasurer for Victoria, Committee Hansard, 19 May 2008, p. 8.

[37]       Dr Bruce Flegg MP, Shadow Treasurer for Queensland, Submission 37, Attachment A, p. 6.

[38]      Mr Mike Blake, Tasmanian Auditor-General, Committee Hansard, 20 May 2008, p. 5.

[39]      Australian Bureau of Statistics, Wage and Salary Earners: Public Sector, Australia, 2007.

[40]      (a) Reported as superannuation liability.                                                                            

(b) Reported as unfunded superannuation liability.                                                             

(c) NSW budget notes superannuation liabilities are reported net of prepaid superannuation    contribution assets.                                                                    

          (d) SA budget indicates a structural break in 2008 from the transfer of TransAdealide, the Adelaide Festival Centre Trust and the SA share of the Murray-Darling Basin Commission into the GGS.

          (e) The Victorian budget includes a detailed note on the superannuation system, indicating that the superannuation figure is net of assets, that is, assets held against superannuation.

[41]      The method used to achieve this incorporation is as follows: The sum of deposits held, advances received, government securities issued, loans and other borrowings; plus superannuation liabilities; less the sum of cash and deposits, advances paid, investments, loans made and placements.

[42]      Western Australia records a recurrent $88 million figure for 'convergence differences impacting net debt'. Net debt is calculated in accordance with the description in chapter 3. Please refer also to notes from Table 4.4.                                                                                                                                                                                      

[43]      Mr Terry Mills MLA, Leader of the Opposition for the Northern Territory, Submission 39, p. 3.

[44]      Mr Terry Mills MLA, Leader of the Opposition for the Northern Territory, Submission 39, p. 3.

[45]      Mr Mike Blake, Tasmanian Auditor-General, Committee Hansard, 20 May 2008, p. 9.

[46]      Mr Mike Baird MP, Shadow Finance Minister for New South Wales, Committee Hansard, 24 July 2008, p. 4.

[47]      Dr Bruce Flegg, Shadow Treasurer for Queensland, Committee Hansard, 17 July 2008, p. 3.

[48]      Mr Greg Kelton, 'House slump to cost $30m in tax revenue', Adelaide Advertiser, 1 September 2008, p. 2.

[49]      Mr Terry Mills MLA, Opposition Leader for the Northern Territory, Submission 39, p. 2.

[50]      The Hon. Greg Pearce MLC, Shadow Treasurer for New South Wales, Submission 6, p. 13.

[51]      Property Council of Australia, Submission 30, p. 1.

[52]      Mr Terry Mills, Leader of the Opposition for the Northern Territory, Submission 39, p. 2.

[53]      Department of the Treasury, Submission 25, p. 9. See also the table setting out Commonwealth funding in this section.

[54]      Associate Professor Graeme Wines, personal capacity, Submission 17, p. 5.

[55]      New South Wales Government, Budget Papers 2008–2009, Budget Overview, p. 11.

[56]      2008–09 Queensland Budget Papers, How the money is raised; How the money is spent, www.budget.qld.gov.au/budget-papers/2008-09/budget-highlights-15-2008-09.pdf, (accessed 20 August 2008).

[57]      Tasmanian Audit Office, Report of the Auditor-General No. 2 of 2007, Executive Summary, November 2007, p. 29.

[58]      Real Estate Institute of Australia, Submission 28, p. 4. See also, for example, Insurance Australia Group, Submission 10, pp 1–2; Commerce Queensland, Submission 4, p. 4.

[59]      Mr John Nicolaou, Chief Economist, Chamber of Commerce and Industry of Western Australia, Committee Hansard, 12 June 2008, pp 44 and 50.

[60]      Property Council of Australia, Submission 30, p. 3.

[61]      Property Council of Australia, Submission 30, p. 5.

[62]      Mr Kim Wells MP, Shadow Treasurer for Victoria, Committee Hansard, 19 May 2008, p. 17. See also Ms Vicky Chapman MP, Deputy Leader of the Opposition for South Australia, Committee Hansard, 27 March 2008, pp 25–26.

[63]      Mr Greg Kelton, 'House slump to cost $30m in tax revenue', Adelaide Advertiser, 1 September 2008, p. 2.

[64]      Mr Robert Carling, State Tax reforms: Progress and Prospects, 2008. See also Mr Robert Carling, personal capacity, Submission 27, Attachment B, p. 10.                                              See also Australian Industry Group, Submission 21, p. 3

[65]      See, for example, Mr Nick Behrens, State Manager, Commerce Queensland, Committee Hansard, 17 July 2008, p. 15; Mr Paul Bidwell, General Manager, Commerce Queensland, Committee Hansard, 17 July 2008, p. 16.

[66]      Mr Nick Behrens, State Manager, Commerce Queensland, Committee Hansard, 17 July 2008, pp 22–23.

[67]      Mr Kim Wells MP, Shadow Treasurer for Victoria, Committee Hansard, 19 May 2008, pp 4–5.

[68]      Mr Mike Baird MP, Shadow Minister for Finance for New South Wales, Committee Hansard, 24 July 2008, p. 11.

[69]      Scott Bennett and Richard Webb, Specific Purpose Payments and the Australian federal system, Parliamentary Library Research Paper no. 17, 2007–08, p. 17.

[70]      Ms Vicky Chapman MP, Deputy Leader of the Opposition for South Australia,             Committee Hansard, 27 March 2008, p. 32.

[71]      Dr Steve Thomas MLA, Shadow Treasurer for Western Australia, Committee Hansard,           12 June 2008, p. 17.

[72]      Institute of Public Affairs, Submission 30, p. 6.

[73]      Professor Sinclair Davidson, Economist, Institute of Public Affairs, Committee Hansard, 19 May 2008, p. 24.

[74]      Professor Sinclair Davidson, Economist, Institute of Public Affairs, Committee Hansard, 19 May 2008, p. 26.

[75]      Australian Local Government Association, Submission 33, Attachment A, pp 1–4.

[76]      Professor Brian Dollery, Submission 20, Attachment B, Dollery, Byrnes and Crase, Resolving the Australian Local Infrastructure Crisis through a Federal Infrastructure Asset Fund, p. 5.

[77]      Australian Local Government Association, Submission 33, Attachment A, p. 2.

[78]      Australian Local Government Association, Submission 33, Attachment A, p. 2.

[79]      House of Representatives Standing Committee on Economics, Finance and Public Administration, Rates and Taxes: A Fair Share for Responsible Local Government, October 2003, p.34.

[80]      House of Representatives Standing Committee on Economics, Finance and Public Administration, Rates and Taxes: A Fair Share for Responsible Local Government, October 2003, foreword.

[81]      Australian Local Government Association, Submission 33, Attachment A, pp 3–4.

[82]      Tracy Ong, 'Parting shot on credit rating', Australian Financial Review, 6 September 2008, p. 5.

[83]      Mr Henry Ergas, personal capacity, Submission 42, p. 5.

 

Chapter 5 - Government Business Enterprises

[1]        Mr Mike Baird MP, Shadow Minister for Finance for New South Wales, Committee Hansard, 24 July 2008, p. 6.

[2]        Mr Kim Wells MP, Shadow Treasurer for Victoria, Committee Hansard, 19 May 2008, p. 15.

[3]        Mr Mike Baird MP, Shadow Minister for Finance for New South Wales, Committee Hansard, 24 July 2008, p. 3.

[4]        Dr Bruce Flegg MP, Shadow Treasurer for Queensland, Committee Hansard, 17 July 2008, pp 4–5.

[5]        Dr Bruce Flegg MP, Shadow Treasurer for Queensland, Committee Hansard, 17 July 2008, p. 5. See also, Ms Vicky Chapman MP, Deputy Leader of the Opposition for South Australia, Committee Hansard, 27 March 2008, pp 29–30; Mr Geoffrey Anderson, personal capacity, Committee Hansard, 27 March 2008, p. 56. 

[6]        The 'risk free rate of return' is defined as the 10 year government bond rate, which is currently 5.8 per cent.

[7]        Productivity Commission, Financial Performance of Government Trading Enterprises 2004–05 to 2006–07, Research Paper, June 2008, p. iii.

[8]        Productivity Commission, Financial Performance of Government Trading Enterprises 2004–05 to 2006–07, Research Paper, June 2008, p. 1.

[9]        Productivity Commission, Financial Performance of Government Trading Enterprises       2004–05 to 2006–07, Research Paper, June 2008, p. 33.

[10]      Mr Tim Marney, Under-Treasurer, Department of Treasury and Finance,                         Western Australian Government, Committee Hansard, 12 June 2008, p. 25.

[11]      Department of the Treasury, Submission 25, p.17.

[12]      Professor Sinclair Davidson, Economist, Institute of Public Affairs, Committee Hansard, 19 May 2008, p. 31.

[13]      Australian Industry Group, Submission 21, p. 2.

[14]      Productivity Commission, Financial Performance of Government Trading Enterprises       2004–05 to 2006–07, Research Paper, June 2008, p. 34.

[15]      The Productivity Commission Report identifies policy documents from jurisdictions which acknowledge the existence of agreement to run GBEs on a commercial basis, and to exercise transparency in relation to CSO costs and payments. See, for example, Box 3.1, p. 42.            See also evidence from Mr Tim Marney, Under Treasurer, Western Australia,             Committee Hansard, 12 June 2008, p. 37.

[16]      Productivity Commission, Financial Performance of Government Trading Enterprises       2004–05 to 2006–07, Research Paper, June 2008, pp 41–46.

[17]      Productivity Commission, Financial Performance of Government Trading Enterprises 2004–05 to 2006–07, Research Paper, June 2008, p. 39.

 

Chapter 6 - Infrastructure

[1]        Department of the Treasury, Submission 25, p. 15.

[2]        Department of the Treasury, Submission 25, p. 15.

[3]        Department of the Treasury, Submission 25, p. 15.

[4]        Mr Tony McDonald, General Manager, Department of the Treasury, Committee Hansard, 25 July 2008, p. 77, drawing from 2008–09 Budget Paper No. 1, Statement 4, pp 4–8. 

[5]        2008–09 Budget Paper No. 1, Statement 4, pp 4–8. 

[6]        2008–09 Budget Paper No. 1, Statement 4, pp 4–9. 

[7]        Dr Vince Fitzgerald, private capacity, Committee Hansard, 19 May 2008, pp 35–36.

[8]        Dr Steve Thomas MLA, Shadow Treasurer for Western Australia, Committee Hansard, 12 June 2008, pp 4 and 6.

[9]        Mr Terry Mills MLA, Leader of the Opposition for the Northern Territory, Submission 39, p. 5.

[10]      Mr Kim Wells MP, Shadow Treasurer for Victoria, Committee Hansard, 19 May 2008,

pp 15–16.

[11]      Mr Kim Wells MP, Shadow Treasurer for Victoria, Committee Hansard, 19 May 2008, pp 8–9.

[12]      Dr Bruce Flegg MP, Shadow Treasurer for Queensland, Submission 37, p.3.

[13]      Ms Marisa Purvis-Smith, Manager, State Finance and Reporting Unit,                         Department of the Treasury, Committee Hansard, 25 July 2008, p. 63.

[14]      See also, for example, Mr Henry Ergas' evidence before the committee in Canberra,          private capacity, Committee Hansard, 25 July 2008, p. 45.

[15]      House of Representatives Standing Committee on Economics, Finance and Public Administration, Committee Hansard, 17 August 2007, p. 14.

[16]      Evidence from representatives of the Reserve Bank of Australia was that public spending, insofar as it contributes to total spending in the economy, contributes to inflationary pressures. Dr Tony Richards, Head of Economic Analysis, Committee Hansard, 24 July 2008, p. 20.

[17]      Concept Economics, Submission 42, p. 9.

[18]      Mr Henry Ergas, private capacity, Committee Hansard, 25 July 2008, p. 51.

[19]      Mr Tony McDonald, General Manager, Department of the Treasury, Committee Hansard, 25 July 2008, pp 69–70.

[20]      Mr Tim Marney, Under-Treasurer, Western Australia, Committee Hansard, 12 June 2008, p. 26.

[21]      Concept Economics, Submission 42, p. 6.

[22]      Concept Economics, Submission 42, pp 7–8. See also Mr Ergas' evidence,                     appearing in a private capacity before the committee in Canberra, Committee Hansard,           25 July 2008, p. 46.

[23]      Concept Economics, Submission 42, p. 8.

[24]      See, for example, Mr Tony McDonald, General Manager, Department of the Treasury, Committee Hansard, 25 July 2008, p. 69.

[25]      See, for example, Dr Tony Richards, Head of Economic Analysis, Reserve Bank of Australia, Committee Hansard, 24 July 2008, p. 18; Mr Mike Baird MP, Shadow Minister for Finance for New South Wales, Committee Hansard, 24 July 2008, p. 2. 

[26]      Concept Economics, Submission 42, p. 9.

[27]      Concept Economics, Submission 42, p. 9.

[28]      Concept Economics, Submission 42, p. 11.

[29]      Mr Kim Wells MP, Shadow Treasurer for Victoria, Committee Hansard, 19 May 2008, p. 6.

[30]      Concept Economics, Submission 42, p. 9. Similar evidence was received, in relation to cost over-runs, from witnesses including Mr Kim Wells MP, Shadow Treasurer for Victoria, Committee Hansard, 19 May 2008, pp 7–8.

[31]      Mr Kim Wells MP, Shadow Treasurer for Victoria, Committee Hansard, 19 May 2008, p. 7.

[32]      Concept Economics, Submission 42, p. 12.

[33]      Mr Geoffrey Anderson, private capacity, Committee Hansard, 27 March 2008, p. 56.

[34]      Mr Geoffrey Anderson, private capacity, Committee Hansard, 27 March 2008, p. 56.

[35]      Concept Economics, Submission 42, p. 12.

[36]      Associate Professor Graeme Wines, private capacity, Submission 17, p. 3.

[37]      Associate Professor Graeme Wines, private capacity, Submission 17, p. 3.

[38]      Dr Bruce Flegg MP, Shadow Treasurer for Queensland, Submission 37, p. 2.

[39]      Ms Vicky Chapman MP, Deputy Leader of the Opposition for South Australia, Committee Hansard, 27 March 2008, pp 22 and 24. Ms Chapman went on to note that the primary problem may lie with the management model, rather than the project's status as a PPP.

[40]      See, for example, Tasmanian Opposition, Submission 32, p. 2.

[41]      Mr John Nicolaou, Chief Economist, Chamber of Commerce and Industry for Western Australia, Committee Hansard, 12 June 2008, p. 40.

[42]      Dr Steve Thomas MLA, Shadow Treasurer for Western Australia, Committee Hansard, 12 June 2008, p. 4.

[43]      Concept Economics, Submission 42, p. 13.

[44]      Mr Henry Ergas, private capacity, Committee Hansard, 25 July 2008, pp 38–39.

 

Chapter 7 - Norfolk Island

[1]        Norfolk Island Act 1979 (Cth)

[2]        Hon. Grant Tambling, Submission 43, former Administrator of Norfolk Island, p. 3.

[3]        Ms Karen Stewart, Acting Assistant Secretary, Territories East Branch,                          Attorney-General's Department, Committee Hansard, 25 July 2008, p. 55.

[4]        Hon. Grant Tambling, former Administrator of Norfolk Island, Committee Hansard, 17 July 2008, p. 31.

[5]        Hon. Grant Tambling, former Administrator of Norfolk Island, Submission 43, p. 4.

[6]        Ms Karen Stewart, Acting Assistant Secretary, Territories East Branch,                            Attorney-General's Department, Committee Hansard, 25 July 2008, pp 55–56.

[7]        The apparent spike in cash reserves held by the Norfolk Island Government at 30 June 2006 relates to cash received in that year for the subsequent projects to resurface the Norfolk Island Airport runway ($5.7m) and to refurbish the Kingston Pier ($3.4m). These projects were funded by a Commonwealth interest-free loan and grant respectively.

[8]        Attorney-General's Department, additional information, received 13 August 2008, p. 1.

[9]        The Hon Grant Tambling, former Administrator of Norfolk Island, Committee Hansard, 17 July 2008, p. 31.

[10]      Ms Karen Stewart, Acting Assistant Secretary, Territories East Branch, Attorney-General's Department, Committee Hansard, 25 July 2008, p. 59.

[11]      Hon. Neville Christian MLA, Minister for Finance, Norfolk Island Government, Committee Hansard, 1 September 2008, pp 41–42.

[12]      The Hon Grant Tambling, former Administrator of Norfolk Island, Submission 43,     Attachment F.

[13]      Hon. Grant Tambling, former Administrator of Norfolk Island, Committee Hansard, 17 July 2008, p. 41.

[14]      Government of Norfolk Island, Submission 45, pp 1–7.

[15]      Government of Norfolk Island, Submission 45, p. 3.

[16]      Government of Norfolk Island, Submission 45, p. 3.

[17]      Government of Norfolk Island, Submission 45, p. 6.

[18]      Government of Norfolk Island, Submission 45, p. 6.

[19]      Hon. Neville Christian MLA, Minister for Finance, Norfolk Island Government, Committee Hansard, 1 September 2008, p. 2.

[20]      Econtech Pty Ltd, The Norfolk Island Government Financial Position – One Year Later, p. i, forming attachment B to Government of Norfolk Island, Submission 45.

[21]      Hon. Neville Christian MLA, Minister for Finance, Norfolk Island Government, Committee Hansard, 1 September 2008, p.8.

[22]      Econtech Pty Ltd, The Norfolk Island Government Financial Position – One Year Later, p. i, forming attachment B to Government of Norfolk Island, Submission 45.

[23]      Quis custodiet ipsos custodes?; Inquiry into Governance on Norfolk Island, Joint Standing Committee on the National Capital and External Territories, December 2003; and Norfolk Island Financial Sustainability: The Challenge: Sink or Swim, Joint Standing Committee on the National Capital and External Territories, November 2005.

 

Chapter 8 - Conclusions and recommendations

[1]        Charter of Budget Honesty Act 1998, s. 1.

[2]        The Uniform Presentation Framework provides, at page 27, that 'Jurisdictions should provide full explanations for any departures from the UPF in the presentation of their data'.                See www.treasury.gov.au/documents/1371/PDF/2008_UPF.pdf (accessed 21 August 2008). 

[3]        Associate Professor Graeme Wines, personal capacity, Submission 17, p. 13.

[4]        Associate Professor Graeme Wines, personal capacity, Submission 17, p. 12.

[5]        Charter of Budget Honesty Act 1998, s. 5, www.scaleplus.law.gov.au/html/pasteact/2/3115/0/PA000140.htm (accessed 21 August 2008).

 

Government Senators' Minority Report

[1]        Majority report, p. 94.

[2]        1996–97 Budget Statement 3, Budget Paper 1 and 2; 1998–99 Budget Paper 1 and 2; 1999–00 Budget Paper 1 and 2; 2000–01 Budget Paper 1 and 2; 2001–02 Budget Paper 1 and 2; 2002–03 Budget Paper 1 and 2; 2003–04 Budget Paper 1 and 2; 2004–05 Budget Paper 1 and 2; 2005–06 Budget Paper 1 and 2; 2006–07 Budget Paper 1 and 2; 2007–08 Budget Paper 1 and 2; 2007–08 MYEFO.

[3]        Notes: All data is drawn from Budget Paper 1, GFS Financial Statements, for the years 1999–00 to 2008–09; All figures are in nominal dollars; 'Budget' is the budgeted forecast within the budget year; 'Outcome' is the ultimate outcome recorded for the budget year (typically a two year lag); and Operating balance is the difference between revenues and expenses.

[4]        www.infrastructureaustralia.gov.au/function_full.aspx and www.infrastructure.gov.au/department/statements/2008_2009/budget/Part-C2-2.aspx (accessed 17 September 2008).