The Long Awaited Investigation Into the 'Fudget Budgets'
Author:
Mark Milke
1999/04/15
Much of what was contained in Auditor George Morfitt's long awaited investigation into the 'fudget budgets' was already known. No doubt the response was as well.
Finance Ministers Elizabeth Cull and Andrew Petter repeatedly ignored the best advice of experts in the Ministry of Finance and presented budgets that they knew to be false. The 1996 budget was nothing less than a slick campaign brochure designed to create the perception that the New Democrats had balanced the province's books.
So what else is new
Well for starters Morfitt reveals that Glen Clark was no casual observer in events leading up to the 1996 budget. On at least two occasions - February 27 and March 6, 1996 - Premier Clark was briefed by Finance Officials and his former Finance Minister Elizabeth Cull in which she stated that revenue forecasts were "considerably above her - comfort range". Nevertheless, the Premier reported to the media on March 12 "We're on track for a balanced budget for the 1995/96 fiscal year and a second balanced budget next year".
Second, is the picture painted by Morfitt of political interference in the budget process. Glen Clark's chief emissary Tom Gunton routinely called Finance to insist more 'revenue optimism' was needed in everything from corporate profits to the price of softwood lumber.
Third, the government actually went to the trouble of receiving a legal opinion to avoid having to table revised financial statements after the May 1996 election. Gee - wonder why they'd do that
Morfitt praised the work of the professional civil service, in particular Secretary to Treasury Board Brenda Eaton who stood up to - and thankfully documented -- interference on more than one occasion. "The systems and procedures employed by the secretariat for estimating revenue - were appropriate, and that staff were diligent and dedicated professionals," states Morfitt.
Which leads to the nagging question. Why not put the blame squarely on the shoulders of those responsible To be sure, Morfitt criticizes former Finance Minister Elizabeth Cull for "inappropriate" forecasting and her successor Andrew Petter as "responsible" for a lack of prudence. But these are weasel words. Two-and-a-half years of investigation suggests the public is owed more than vague condemnations.
In concluding, the Auditor makes several recommendations - some repeated -- to improve the budgeting process: move to summary financial statements, establish performance measurement reviews, legislate debt management commitments, end the consistent use of special warrants, introduce intergenerational reporting and open up the budgeting process through use of all-party committees and other transparency mechanisms.
But George Morfitt forgot the single most important recommendation to improve budgeting: get rid of lying politicians who abuse their positions of trust to deceive the public. All the safeguards in the world are meaningless if they are controlled by the politicians. True accountability rests in tools such as recall, initiative and voting reform which are controlled by the public.
And as if George Morfitt's report wasn't enough, certainly the government's response to it was. Prior to its release the government trotted out two completely irrelevant reports related to 'government forecasting' at a cost of 109,000 tax dollars as a cheap - sorry, expensive - effort to divert criticism. Instead of responsibility we get spin. Instead of contrition we get arrogance. Instead of decency we get Glen Clark and his corrupt government.