Financial illiteracy

 “Treasurer, is the Budget blowing out again”, asks Peter Gutwein, Shadow Treasurer in a Press Release dated 15^th September 2009. “Last year, in the midst of the Global Financial Crisis, the State Government managed to spend $311 million more than it budgeted”.

Quite correct. Mr Gutwein must be reading from page 10 of the Preliminary Outcomes Report released 14^th August 2009.

But then Mr Gutwein says “(t)his was despite Tasmania losing nearly $220 million in revenue in 2008-09.”

That is incorrect. Revenue was $103 million higher in 2008/09 than budgeted not $220 million less.

Mr Gutwein then intones“(w)e need financial leadership and vision, not spin and poor management”.

Agreed, but we also need people who can read a simple set of accounts.

Accounting for dummies.. a look at Forestry Tasmania

Media releases which accompany reports such as FT’s 2008/09 annual financial statements usually attempt to mislead rather than inform. The reliance on PR people who are obviously quite limited when it comes to interpreting economic and financial statements isn’t exactly designed to logically and coherently explain FT’s current situation to stakeholders.

Where did all the money go?

Where did the money go? The perennial question every time a company heads into bankruptcy.

It is of particular interest in cases of failed MIS companies for anyone trying to assess the effectiveness of the MIS model and the efficacy of Government policy in the important area of land use.

The recently fallen Great Southern Limited (GSL) represented 30% to 35% of the MIS industry in turnover terms. Whilst it has operated since 1987 it didn’t list on the ASX until 1999. There’s reasonably good data available from 1st July 1998 until 30th September 2008 which may shed some light on how the MIS industry has operated.

More info please

I agree with Matt ( Why there was no doorstop ). Avoiding doorstop interviews are minor misdemeanours.

Provided the Premier maintains continuous disclosure.

The Premier’s recent speech to the Party faithful echoes much of the State of the State speech in March 2009.Consider the much vaunted irrigation proposals (in March), which “revolves around the creation of a Statewide water economy to make Tasmania a foodbowl for Australia. “

PAL policy

The election campaign has already started if the weekend’s press reports are any guide.

Mr Will Hodgman will certainly bring a fresh approach to policy making if he replicates his recent parliamentary performance in the matter of the PAL policy.

The State is now without a Protection of Agricultural Land (PAL) policy.

FEA update

Forest Enterprises (FEA) announced to ASX on 26th June 2009 a lower than expected MIS sales figure for the almost completed year 2008/09(FY09). http://www.asx.com.au/asxpdf/20090626/pdf/31j8mn9qqfyr3x.pdf
And a lower than the hankered figure as per the ASX announcement of 27th May 2009.

The “sales are likely to be significantly less than the $60 million achieved in FY06 and FY07”.

Significantly less, that’s an unequivocal statement.

Voodoo economics

Consultants are often willing to write reports to support floundering arguments. The forest industry's commissioning a report comparing the assistance it receives with other industries is a case in point.

At first I thought it (see Brucey hits back for forestry) was written as a spoof.

Or maybe similar to the recent Sunday Tasmanian Op Ed piece that was riddled with errors from the very first paragraph, designed as an educational exercise, encouraging students to spot the incorrect facts, identify the non sequiturs and the sophist techniques with a view to honing their skills.