Auditor-General alarmed at Labor threatening his independence

Victoria’s Auditor-General, Des Pearson, has expressed strong concern about threats from the Brumby Government to the independence of his office in legislation before the Parliament, which the government to date has refused to amend.

Mr Pearson has also strongly criticised Brumby Government MPs on the Public Accounts and Estimates Committee (PAEC) for trying to gag him from telling the Committee about his concerns.

Mr Pearson made his views clear at a PAEC hearing that took place after the Labor majority members of PAEC had to be ordered by the Legislative Council to allow him to give evidence on the Public Finance and Accountability Bill, after initially refusing to allow him to appear.

Speaking at last week’s PAEC hearing, the transcript of which was tabled in the Legislative Council late yesterday, Mr Pearson said: ‘… I was surprised not to be called and disappointed because, basically, as the independent auditor, I do not think anybody is entitled to speak for us. For any agency to represent our view, I would have thought, especially with the Public Accounts and Estimates Committee, would not be accepted’. (Committee Hansard, p13)

Mr Pearson also stated that: ‘I have to record that I was surprised that we were not called prior to finalising the 11 August report … It appears yet again a comment reflecting adversely on the office has been accepted without testing and nor has procedural fairness been afforded’. (Committee Hansard, p2)

The Auditor-General also stated that the Bill would enable ‘the executive to make directions, albeit legally, without consultation and to impose on the operations of the Auditor-General’ (Committee Hansard, p6) and agreed that being under threat of having his funds withdrawn by the Treasurer would undermine his independence (Committee Hansard, p16).

“The Auditor-General’s evidence – which Labor fought for so long to gag – makes clear that this legislation threatens the standing of the Auditor-General as an independent officer of the Parliament,” Shadow Minister for Finance Robert Clark said today.

“Labor came to office claiming to champion the independence of the Auditor-General, but after 11 years not only is John Brumby threatening the independence of the Auditor-General and other independent watchdogs, but his MPs are trying to gag the Auditor-General from telling Parliament about those threats,” Mr Clark said.

The Coalition will move a series of amendments to the Bill to protect the status of independent public bodies such as the Auditor-General and address other problems in Labor’s legislation.