The Shadow Treasurer Dr Steve Thomas says that the Auditor General’s report released today on the McGowan Government’s COVID recovery program raises serious concerns about how the Government has managed its $5.8 billion stimulus spending.
“The Auditor General has reviewed COVID response spending representing $2.14 billion, or 37% of the full package, and has raised serious concerns about the timeliness and adequacy of its delivery” Dr Thomas said.
“This comes on the back of concerns that much of the response package was Government spending on normal infrastructure like schools and already existing programs like Metronet.”
The report identifies that some areas of stimulus spending have barely got started, especially in the area of housing.
“By March this year we were already in the middle of a housing crisis, with people around the state unable to find homes. At the same time the stimulus spending on housing was a tiny trickle.”
The report shows that in housing the following expenditure of budgeted funds had been achieved by March –
• The construction of up to 250 social houses – less than 1% of the $97 million budget expended
• A maintenance program for 3,800 regional social houses – 4% of the $80 million budget expended
• Refurbishment of 1,500 social houses – 2% of the $152 million budget expended.’
“It is damning that only $6.42 million of the entire $319 million social housing package trumpeted by the Government was expended in a timely manner” Dr Thomas said. “That is a paltry 2% success rate at getting the funding to where it was needed on time in the middle of a recognised housing crisis.”
The McGowan media release of the time (June 2020) said that the social housing refurbishment was “scheduled for immediate rollout” and the 3,800 regional houses maintenance program was “also scheduled for an immediate start”!
Dr Thomas said the failure of regional land development was another critical failure.
“The report tells us that of the $166 million set aside to drive regional development and sales of both residential and commercial land, only 13% was out there when it was most needed.”
“The Government has been quick to claim credit for the stimulus spending, but the outcome is underwhelming.”