Report finds Costello audit ‘intellectually dishonest’

A report commissioned by the Queensland Council of Unions:

 

The Costello audit into Queensland’s finances is “intellectually dishonest” and fails to observe basic accounting standards, according to an independent report released today.
The Queensland Council of Unions, which represents unions that cover more than 370,000 workers, commissioned the report after the release of the “Costello Audit of Commission” in June 2012 led to thousands of job cuts.
The independent “Review of the Costello Report” launched today was written by former Professor of Accounting at the University of Sydney, Bob Walker, and respected economist Dr Betty Con Walker.
The Newman Liberal National Party government had used the Costello document as justification for “damaging the careers and quality of life of the families of the many public servants who face retrenchment”, the report said.
In a detailed 113-page publication, the authors said the Costello document failed to comply with basic accounting standards in analysing the state’s finances.
It also failed to properly analyse Queensland’s assets against liabilities, and used its own figures rather than relying on official Australian Bureau of Statistics data.
Costello also chose to largely ignore the impact of natural disasters on Queensland’s deficit, instead blaming excessive employment in the public sector.
The Walker report also finds fault with Costello’s explanation of the cause  of Queensland’s public sector employment growth, labelling his findings “alarmist” and “simplistic”.
LNP claims that the former government had to borrow to “support the budget” is also flatly contradicted by cash flow statements which Costello ignored, the report says.
QCU President John Battams said the authors had many years of experience in accounting practice and economic research.

Download the QCU’s summary of the Walker Report findings.

“This report exposes the attempt of Peter Costello and Campbell Newman to hoodwink the Queensland public on the state of Queensland’s finances.
“Their much-repeated ‘$100 billion debt’ claim is shown to be an invention, and based on little more than drawing lines on a graph.
“It shows that their document is hardly worthy of the term ‘audit’ and disproves any link between Queensland’s debt and the number of public servants,” Mr Battams said.
He expected the Walker report findings to further concern Queensland communities who were already reeling from LNP job cuts in health and community services.
“We will ensure that all Members of Parliament receive a copy of the report so they can better identify the mistruths and inaccuracies rolled out by Costello and Newman,” he said.