Defence Financial Management Still Out Of Control Chris Evans - Shadow Minister for Defence

Media Statement - 31 October 2003

Labor is seriously concerned that the Auditor-General has once again qualified his endorsement of the Defence financial statements for 2002-03.

The Defence Annual Report 2002-03 reveals that the nearly $4 billion worth of Defence assets and $1 billion worth of employee leave entitlements cannot be verified due to inadequacies in the Department's financial systems.

This is a damning report into the management of the Defence budget, which totalled $15.8 billion in 2002-03, and shows once again that the Howard Government has been unable to get Defence's finances in order.

It comes on top of earlier reports that the Howard Government has failed to deliver any of the 20 largest Defence equipment projects that were being planned in 1996.

The 18 projects that are still underway are total of 85 years late and up to $7 billion above original cost estimates.

This is the second year in a row that the Auditor-General has taken the previously unprecedented step of qualifying Defence's financial statements.

These findings confirm that after nearly eight years of internal reviews and reforms, Defence financial management is still out of control.

It also demonstrates that Robert Hill has failed to turn around very serious reservations about Defence finances that are expressed by the Auditor-General year after year.

Labor is also deeply concerned that the Minister has once again made a major Defence announcement on a Friday afternoon in an attempt to avoid media and public scrutiny.

Labor calls on the Howard Government to provide a full report on exactly what it is doing to address the problems identified by the Auditor-General, to protect the billions of dollars that taxpayers invest in Defence every year.