4 Mar 2009

Cullen insists he followed law on ACC shorfall disclosure

6:05 pm on 4 March 2009

Former Finance Minister Michael Cullen insists he followed the law when it came to disclosing the financial state of the Accident Compensation Corporation, before last year's election.

An independent report has found that a $1.5 billion shortfall in ACC's non-earner account over the next four years should have been disclosed in the Pre-Election Fiscal and Economic Update last October.

The update is meant to contain the latest information on the state of the Government's books.

The Treasury has apologised to Finance Minister Bill English for its failure to include the funding shortfall in the pre-election update.

The Government accuses Labour ministers, including Dr Cullen, of acting to hide the shortfall, rather than revealing the problem before the general election on 8 November.

Dr Cullen insists he abided by the law.

However, ACT MP Roger Douglas told the House that Labour appeared to think they were above the law. Maori Party co-leader Tariana Turia was also critical.

Mr English says he still has confidence in Treasury officials and the advice they provide. He says he believes there was no deliberate intent to mislead.