Canavan says NT Govt hiding true debt level
FORMER federal Northern Australia Minister Senator Matt Canavan says the Gunner government is trying to dupe Territorians about the real magnitude of its skyrocketing debt
Northern Territory
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FORMER federal Northern Australia Minister Senator Matt Canavan says the Gunner government is trying to dupe Territorians about the real magnitude of its skyrocketing debt.
Senator Canavan said the Gunner government is trying to create a coronavirus smoke screen to hide the true figures.
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“Every other government in this country produces a full set of four years of figures before an election and this is the first time in a generation that any government in Australia has tried to hoodwink its own people by not producing a full set of books before they vote at an election,” he said.
“The real position for 2020/21 and the forward estimates is likely to be a lot worse than published in Mr Gunner’s July update because there will be a number of additional ‘Operational Commitments’ that are not yet fully signed off but are planned for and will be in the budget.”
Senator Canavan says the July update figures lack transparency because they are presented in a way that does not allow proper analysis.
“For example interest cost is only rising by $18 million but net debt is up by $1.4 billion,” he said.
“While interest cost may be based on borrowing at the end of the year, the $18 million interest cost is a net figure of interest paid and interest received.”
He said even if the borrowings are made at year end, cash balances will have been run down during the year, reducing income. He says the $18 million interest cost in the July update will be far too low.
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He says the debt position in later years is far worse in the later years than presented in the July update, predicting net debt will rise by another $2 billion by end of 2022/23 from the published 2020/21 $8.2 billion.
NT Treasurer Nicole Manison said she would not be taking any advice from a federal backbencher from Queensland.
Originally published as Canavan says NT Govt hiding true debt level