Super Report Released But Budget Clouds Remain 
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Thursday 2 August 2007 A report released today fails to outline why the Iemma Government has not contributed to the State's unfunded superannuation obligations, instead hiding its real liabilities in this year’s "supposed" turn-around Budget, said Shadow Minister for Finance Mike Baird. "This blatant use of financial engineering has allowed Michael Costa to declare the Budget in surplus despite the reality of a significant deficit. “It is a concern for public servants throughout NSW that the Iemma Government has understated its superannuation liabilities by using an inflated discount rate. “In revealing this report the NSW Treasurer does not explain why he used a discount rate of 7.3% while all other states and the Commonwealth are no higher than 6%. “We must also be suspicious when for the last four years the Iemma Government has contributed on average $1.3 billion to the reduction of super liabilities and yet does not allocate a cent in the last Budget. "There is no need to look any further as we can now all see how the Treasurer made it happen in this year’s Budget, unashamedly using methods that wouldn't have been out of place at Enron,” Mr Baird said. “By playing with these numbers the Iemma Government is risking the hard-earned super of nurses, teachers and other public servants because it wants to generate positive headlines rather than responsibly manage the State's economy.” The Iemma Government released the report yesterday in response to calls from the Opposition to explain its accounting methods in the last Budget and after Mr Baird lodged a Freedom of Information request. Prepared by Mercer Human Resource Consulting the report works off assumptions ultimately approved by the Iemma Government.
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