Independent Senator Ian Roach has called on Finance Minister Larry Howai to say whether the Government intends to extract money from its Heritage and Stabilisation Fund (HSF) during the current oil and gas crisis. He was contributing to the debate on the Finance (Supplementation and Variation of Appropriation) (Financial Year 2014) Bill, 2015 and the Finance Bill 2015. The fund stood at US$5.56 billion last year.
“The matter of the Heritage and Stabilisation Fund is of concern to this country,” said Roach. “How is it going to be used during this time?” he asked. He said some indication from the Minister of Finance Larry Howai would be appreciated. “He needs to tell the country what is the Government’s intention to extract from the fund during this time,” he added. He said while the fund was established precisely for that type of situation he had concerns after reading the act.
“What is required from the Minister of Finance is to articulate, for the point of public edification, whether or not the circumstances that exist now for this current energy crisis require the Government or entitle the Government to access the fund. “If so, spell out carefully in what terms and how it would deal with withdrawals and such,” he added. He said the fund was set up for “rainy days” and felt the act should be reviewed.
“We have before us the largest budget passed since 2010. It just seems too high. Now the oil prices have dropped and the rug has metaphorically been pulled from under us,” he noted. Roach said the Government needed to deal urgently with the technical issues of adjustment, starting with the critical and pragmatic review of the budget allocations. “So far the Government has not clearly stated its position, vis-a-vis what items and from what ministries it is prepared to make rational adjustments.
“My urging does not mean to panic but to act decisively and responsibly in keeping with the Government mantra that it is a caring Government working in the interest of the people. “That is what every Government ought to do, act in the people’s best interest at all times, good and difficult alike,” he added. Roach said he recognised that there was no quick fix to this situation.
“Government has hard choices to make to reliably address this situation. “Some of the hard choices may well have a bearing on Government’s re-election ambition but if the country’s welfare comes first this should not be a deterrent,” he said.