ODT on ACC cover up

The ODT concludes Labour has not changed its sports:

In 1990, 16 hours after he took office as prime minister, National’s Jim Bolger was informed by the Treasury and the Reserve Bank that the Bank of New Zealand – then Government-owned – was on the verge of insolvency.

Its failure might put at risk the entire financial system. A capital injection was required immediately, and it was no small sum: $600 million.

The outgoing Labour government, led by Mike Moore, had not disclosed the need or that the overall fiscal situation had deteriorated by a further $1.5 billion.

The 1994 Fiscal Responsibility Act was a consequence of this, with the intention of full disclosure by a sitting government of the State’s financial situation before a general election – the so called pre-election update.

Had it existed in 1990, Labour could not have avoided disclosing the truth about the BNZ and the fiscal consequences of its policies. Or so it was thought.

If it is true that there may be a $1 billion “hole” needing to be filled by the new Government, and the Clark Cabinet decided not to tell anyone about it, then it is obvious Labour is back to its deceptive tricks.

There is more to come out about this. I’ve heard whispers that Labour were told of the need for a bailout in the non-earners account as far back as early 2007!!

Mr Parker’s response to all this is indicative of an attitude of mind that is childish.

It may well be that on a strictly legal basis former ministers are not obliged to warn their replacements in a new administration of major unfunded problems, and it may be very amusing for a losing administration to chortle at the resulting political and policy fall-out, but it is entirely against the spirit of good government and the intent of the “no surprises” Fiscal Responsibility Act.

The reality is Labour knew about the need for a bailout for months and months. They merely delayed making a decision on it, to avoid PREFU disclosure.