Explanatory Statement
Appropriation Act (No. 1) 2009-2010, Section 13 – Advance to the Finance Minister
The instrument to which this explanatory statement relates
This explanatory statement relates to an instrument (the instrument) entitled “Advance to the Finance Minister – Section 13 of Appropriation Act (No. 1) 2009-2010”, dated 24 May 2010 and numbered 4 of 2009-2010.
The legislative authority under which the instrument is made
The Advance to the Finance Minister (AFM) is a provision contained in the annual Appropriation Acts. It enables the Finance Minister to facilitate urgent and unforeseen expenditure that was not within the contemplation of Parliament when the Appropriation Act was passed and is therefore not provided for in Schedule 1 of the Appropriation Act.
The Advance to the Finance Minister is provided for under section 13 of Appropriation Act (No. 1) 2009-2010. The discretionary power is exercisable upon the Finance Minister’s satisfaction of the matters specified in section 13. This section indicates that amounts can be issued from the Advance to the Finance Minister, up to a limit of $295 million, if the Finance Minister is satisfied that there is an urgent need for expenditure, in the current year, that is not provided for, or is insufficiently provided for, in Schedule 1 of that Act. The qualifying circumstances on the discretion of the Finance Minister to issue additional amounts under this provision are contained in subsections 13(1) (a) and (b) of that Act. The application from the Department of Immigration and Citizenship has satisfied the Finance Minister that the additional expenditure was not provided for because of unforeseen circumstances.
Exercise of the power via the issue of a determination has effect as if Schedule 1 of Appropriation Act (No. 1) 2009-2010 were amended to make provision for the additional expenditure specified in the determination.
Purpose of the instrument
The instrument determines that the Administered Item for Outcome 4 for the Department of Immigration and Citizenship in Appropriation Act (No. 1) 2009-2010 be increased by $72,572,000. The additional amount is provided to enable the Department of Immigration and Citizenship to meet expected increased costs for irregular maritime arrivals (IMA) during May and June 2010.
Background
The background to the instrument is provided in the revised application made by the Department of Immigration and Citizenship for funding from the Advance to the Finance Minister, reproduced below.
APPLICATION FOR ADVANCE TO THE FINANCE MINISTER – 2009-2010
Agency: Department of Immigration and Citizenship
Appropriation: Appropriation Act (No. 1) 2009-2010
Description: Increased Irregular Maritime Arrivals
Administered Annual Appropriation
Outcome: Outcome 4: Lawful stay of visa holders and access to citizenship rights for eligible people through promotion of visa compliance responsibilities, status resolution, citizenship acquisition integrity, case management, removal and detention, and policy advice and program design.
Source of Available Appropriations | 2007-2008 | 2008-2009 | 2009-2010 |
$ | $ | $ | |
Appropriation Act (No. 1) |
|
| 157,776,000 |
Appropriation Act (No. 3) |
|
| 25,146,000 |
Section 11, 2008-09 retained prior year appropriations |
| 21,434,303 |
|
TOTAL APPROPRIATIONS AVAILABLE |
| 21,434,303 | 182,922,000 |
|
|
|
|
TOTAL AMOUNT SPENT |
| 21,434,303 | 172,625,911 |
TOTAL UNSPENT APPROPRIATIONS |
|
| $10,296,089 |
Appropriation Required: $82,868,089
Appropriations Available: $10,296,089
Amount required from AFM: $72,572,000
AFM Category:
This request is unforeseen and is in accordance with Appropriation Act (No. 1) 2009-2010, Part 3, section 13 (1)(b)”.
Explanation of requirements from AFM:
Urgent:
The Department is close to exhausting all relevant available appropriations to fund its commitment to IMAs. Uncommitted funds from within the outcome will be used to cover increased IMA expenditure for the period to 20 May 2010. After this time, it is expected that all uncommitted funds within Outcome 4 will be exhausted.
In the event that the program has insufficient funds to make payments for increased IMA costs, this would result in the position of DIAC being unable to meet its legal obligations to pay accommodation providers and other contractors. Such an outcome would also result in reduced public confidence in the Government’s administration of IMAs.
Unforeseen:
The cost of reception and processing of IMAs is dependent on the number of new arrivals. As this is difficult to predict, the Government has agreed to provide the Department with a base funding provision and to subsequently adjust that funding to meet the actual costs of managing the IMAs throughout the year. The growth in IMA and resulting accommodation issues was not anticipated at Budget
Forecast to 30 June 2010:
Based on current trends, projected actual expenditure that will be required to meet IMA costs in 2009-10 is approximately $83 million (necessitating an increase in appropriation funding of $72.6 million for the 2009-10 financial year).
Signed By Chief Finance Officer, Department of Immigration and Citizenship
| |
NAME: (block capitals please) | Stephen Sheehan |
SIGNATURE: |
|
DATE: | 20 May 2010 |