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Nova Scotia Auditor-General Jacques Lapointe, whose exposure of the secrecy-shrouded expenses system shook politics here, decried Wednesday "a pervasive policy of secrecy" in government.

Tabling his latest report, Mr. Lapointe said he was unable to audit Nova Scotia Business Inc. and the Industrial Expansion Fund, which collectively doled out $255-million last year, because too much information was ordered withheld by cabinet.

And in a twist worthy of Joseph Heller, the auditor said he could not assess a new initiative aimed at improving accountability within health care - because information about it was deemed confidential.

"The basic principle of public accountability has been violated," Mr. Lapointe told legislators Wednesday morning.

The auditor said he was repeatedly denied information on the orders of the Executive Council, which he said cited cabinet confidentiality or solicitor-client privilege.

"The reasons being given are legal technicalities," Mr. Lapointe said, insisting that he has the right under the Auditor General Act to review any document he needs.

"We see confidential information of all kinds ... and we keep it confidential."

Moments after he released his report, the government moved to profess a new openness.

Finance Minister Graham Steele pledged to introduce legislation by the fall. Calling it a "complex" issue, he said in a release that legislation had to allow Mr. Lapointe the information he needs, while protecting the privacy of those named in the documents.

This is the second time this year Mr. Lapointe has caused government to scramble. His exposure of inappropriate spending by politicians, facilitated by a secretive clubby system of lax controls and allowances that didn't require receipts, prompted two resignations and a storm of public outrage. Government has since moved to tighten the system.

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