TREASURY head Martin Parkinson has assured the opposition the department did not breach its "professional and apolitical ethos" in costing Coalition policies.
TREASURY head Martin Parkinson has assured the opposition the department did not breach its "professional and apolitical ethos" in costing Coalition policies.
As former treasurer Peter Costello was dragged into the row over the government's "leaking" of the costings, Dr Parkinson wrote in a letter to shadow treasurer Joe Hockey: "any suggestion that we would be complicit in questionable practices is without foundation'.
Fairfax papers reported on Monday that three Coalition policies would cost business $4.57 billion in their first full year of operation, according to a Treasury analysis.
The opposition reacted angrily, saying Treasury costing did not deal with offsets - its plan to scrap the carbon and mining and to provide a modest company tax cut.
Mr Hockey demanded Dr Parkinson give an explanation of Treasury's role. Under pressure, the government admitted it had asked Treasury for the costings and took responsibility for putting them out.
In his reply to Mr Hockey on Wednesday, Dr Parkinson said it had long been the case that Treasury was periodically asked by the government of the day to cost or analyse alternative policies, including those from stakeholders or other parties.
Outside of the "caretaker" period, "Treasury does not undertake unsolicited costings of the policies of political parties."
On this occasion Treasury had provided advice to Treasurer Wayne Swan on several policies "at the request of his Office. As is always our practice, the Treasury did not provide the advice or the underlying analysis to anyone outside of the government".
Mr Hockey said that "clearly Dr Parkinson has identified the Treasurer as the person responsible for playing these political games".
Mr Costello rejected suggestions that he had used Treasury material in the same way.
In 2002 Mr Costello said in a statement that Treasury had carried out a preliminary costing of Labor's announcement to oppose superannuation tax measures. But he said on Wednesday "I did not release a Treasury Minute".
In 2004 Ross Gittins reported in the Sydney Morning Herald that in a dispute over a Labor baby care policy, Mr Costello had "produced a minute Treasury had sent him that very day drastically revising down the estimated cost of the baby bonus". Mr Costello said on Wednesday: "The baby bonus was my policy. I had not asked for a costing of their policy".
He said he did not remember ever releasing a Treasury minute - "I surely never 'leaked' them".
Mr Swan denied the government's behaviour politicised the Treasury. "The Treasury has always provided those sorts of numbers to government of both political persuasions".
The opposition says it will send policies to be costed by the new Parliamentary Budget Office, but it is waiting under legislation passes to exempt these from freedom of information provisions. This office keeps confidential requests that are made outside the election campaign.
*Labor's primary vote has risen one point to 37 per cent in the Essential poll.The Coalition has fallen two points to 46 per cent. Labor trails 47-53 per cent on a two party basis.
Frequently Asked Questions about this Article…
What did Treasury head Martin Parkinson say about allegations the department politicised its costings?
Martin Parkinson told the opposition the Treasury did not breach its "professional and apolitical ethos" and said any suggestion the department was complicit in questionable practices was "without foundation." He wrote that Treasury had been asked to cost policies at the request of the government and had not provided the advice or underlying analysis to anyone outside government.
What did Fairfax report about the cost of the Coalition's policies and how much did they say it would cost business?
Fairfax reported that three Coalition policies would cost business $4.57 billion in their first full year of operation, according to a Treasury analysis mentioned in the article.
How did the opposition react to the Treasury costings and what did Joe Hockey demand?
The opposition reacted angrily, arguing the Treasury costing did not deal with proposed offsets such as scrapping carbon and mining taxes and a modest company tax cut. Shadow treasurer Joe Hockey demanded an explanation of Treasury's role and pressured the government for clarity on who commissioned and released the costings.
Did the Treasury release the costings directly to the public or to anyone outside government?
No. Parkinson said the Treasury provided advice to Treasurer Wayne Swan at the request of his office and, as standard practice, did not provide the advice or the underlying analysis to anyone outside of government.
What is the Treasury's stated policy on unsolicited costings of political party policies?
The article says that outside of a caretaker period the Treasury "does not undertake unsolicited costings of the policies of political parties." It will, however, periodically be asked by the government of the day to cost or analyse alternative policies.
What role will the new Parliamentary Budget Office (PBO) play in policy costings according to the opposition?
The opposition says it will send policies to be costed by the new Parliamentary Budget Office. The article notes the opposition is waiting for legislation to pass that would exempt those PBO requests from freedom-of-information provisions; the office keeps requests confidential when they are made outside an election campaign.
Was former treasurer Peter Costello mentioned in the dispute over Treasury costings?
Yes. Peter Costello was drawn into the row and rejected suggestions he had used Treasury material in the same way. He acknowledged Treasury had carried out a preliminary costing in 2002 of a Labor announcement but said he did not release a Treasury minute. Earlier reports that he had used or released Treasury minutes were denied by him.
Did the article mention any polling figures that might interest everyday investors tracking political developments?
Yes. The article notes Labor's primary vote had risen one point to 37 per cent, the Coalition had fallen two points to 46 per cent, and on a two-party basis Labor trailed 47–53 per cent in the Essential poll referenced.
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