Saturday, April 7, 2012

On Auditors and Governments

Canada's system of checks and balances is working.  I note the government has done many things right: 1) It accepted the report.  It didn't deny it.  It didn't argue with the numbers, or deflect the information itself.   2) It reacted.  It didn't ignore it.  It didn't behave like an unmovable monolyth as other governments have done in the face of these reports.  It immediately formed new oversight and a study to determine where the process went wrong, and how the numbers might be off.  3)  Canada signed up for 65 jets at 9 billion.  That was what we **signed**.  Few Canadians appreciate how complex these deals are.  Both sides have armies of lawyers trying to pick language that is favorable.  There are loop holes, no doubt some even favor the buyer.
If the transmission shop says to you a repair will cost you 1,000.00, do you suspect it is actually going to cost 2500.00?  Hey I could tell you a transmission shop that pulls that one routinely.  They are all set up with a car lot next door of used cars--confiscated from drivers who couldn't afford the bill thousands over the estimate.  But I digress.  The government signs an agreement, they believe that the contract is established.
4) Canada has many loopholes.  If the costs go up, even on that basis we can walk away.  We **can**,  This is responsible government.  The contracts are set up with exit strategies.  What the auditor didn't say was why the numbers have changed so much.  That is going to be investigated, and Canadians will be able to see where and if there were mistakes in the process.  While some may have a problem with the opposition parties, I say that at least we can be sure they will keep up the pressure.  But as to judging the right of this or the wrong of it, I would like to wait for all the facts.   Too often on these blogs people bail in on partisan agendas and make vacuous condemnations and attributions, I call for a higher standard that looks as *all* the facts.  That's what differentiates Canadians from a hang-man's mob.

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