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Legislative Assembly for the ACT: 2000 Week 4 Hansard (29 March) . . Page.. 1038 ..
MR HUMPHRIES (continuing):
I have to say that that is a very strange statement to make. I would have thought that even the former public sector accountant of the year would understand that revenue will improve a surplus and expenditure will reduce a surplus. If the Commonwealth gives us money to spend, it is revenue and therefore our position, our surplus, is improved. That seems to me, without having the accolades that Mr Quinlan has had poured on his shoulders, to be axiomatic and very obvious.
Mr Quinlan has again expressed concerns at the recording of interest earnings as revenue in the Territory's financial statements. Let us be clear about these earnings. The treatment of earnings on interest as revenue is consistent with Australian accounting standards. It is not some far-fetched creation of the ACT Government; it is, in fact, consistent with Australian accounting standards. It is consistent with the definition of revenue recorded in statement of accounts concepts 4. In fact, interest is listed as an example of revenue in SAC 4. What is more, Mr Speaker, this particular treatment by the ACT Government has been scrutinised already by the ACT Auditor-General.
Ms Carnell: That is right. What did he say?
MR HUMPHRIES: He said that it is appropriate to treat the interest that the Government earns as revenue. If you think about it, Mr Speaker, how else can you treat it? Is it a liability or an asset? What else is it? It is obviously revenue.
Mr Speaker, the other point that needs to be noted here in terms of the way that this process has come about is that Mr Quinlan was briefed on the day the draft budget was brought down - back in January - on this very issue. He asked about the issue and he was given an answer which explained why it was that we were treating interest as revenue. He made no challenge to that statement, he expressed no adverse view. Yet today in the Canberra Times we have a report that when Mr Quinlan withdrew his statement that the Government had faked the surplus in its budget he defended it on the basis that the Government had failed to provide enough information in the draft budget document.
Mr Speaker, if we had not provided enough information in the draft budget document, and we had, why did Mr Quinlan not ask the question? When I appeared before his committee, when the Under Treasurer appeared before his committee and when he put questions on notice to me subsequent to my appearance before his committee, why did he not do that?
Mr Hird: I am trying to hear this, Mr Speaker.
MR SPEAKER: Order, please! Keep your voices down or go out into the lobby.
MR HUMPHRIES
: I know that members opposite have found, all of a sudden, reason to discuss what they had for lunch and what was the price of the last laundry list that they happened to lodge over the road, Mr Speaker. I would, too, if I was as embarrassed
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