Last year’s Auditor General’s report showed that about 30 state government departments and agencies had estimated that about $108 million of debts owed to government would be lost and not be able to be recovered, Shadow Treasurer, Rob Lucas said today.
In simple terms this means that the Rann Government has made an allowance in its books for total losses of $108 million on debts which were owed to government but were not collected or recovered.
The most recent Auditor General’s report shows that as at 30 June 2005 the following agencies have included the following estimates under the budget line ‘Provision for bad and doubtful debts as at 30 June 2005’.
AGENCY PROVISION FOR BAD/DOUBTFUL DEBT
Health $51.9m
Homestart $17.8m
DECS $15.7m
DTED $11.2m
The total provision for bad and doubtful debts figure is likely to be even higher than $108 million when the accounts of all government departments and agencies are investigated.
“This is just another example of the waste and slack financial management of the Rann Government at a time when they have been drowning in record revenues from property taxes and the GST,” Mr Lucas said.
“The Rann Government has virtually ignored this issue for almost four years and it was only this year the Treasurer issued new Treasurer’s Instructions for all agencies to clarify government policy on debt recovery and write-offs.
“The sad reality is that if the Rann Government had taken action earlier and collected more of this $108 million then millions more could have been spent on critical needs in hospital, school and police services.”