Explanatory Statement
Appropriation Act (No. 1) 2008-2009, Section 14 – 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 14 of Appropriation Act (No. 1) 2008-2009”, dated 18 June 2009 and numbered 6 of 2008-2009.
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.
In Appropriation Act (No. 1) 2008-2009, the Advance to the Finance Minister is provided for under section 14. The discretionary power is exercisable upon the Finance Minister’s satisfaction of the matters specified in section 14. 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 is contained in subsections 14(1)(a) and (b) of that Act. This application 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) 2008-2009 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 3 for the Department of Innovation, Industry, Science and Research in Appropriation Act (No. 1) 2008-2009 be increased by $14,717,045. The additional amount is provided to enable the Government’s contribution towards the establishment and operation of the Royal Institution of Australia.
Background
The background to the instrument is provided in the application made by the Department of Innovation, Industry, Science and Research for funding from the Advance to the Finance Minister. The application is reproduced below.
APPLICATION FOR ADVANCE TO THE FINANCE MINISTER - 2008-2009
Agency: Department of Innovation, Industry, Science and Research
Appropriation: Appropriation Act (No. 1) 2008-2009
Description: Administered Expenses
Outcome: Outcome 3 – Maintain a strong science and research capacity required to generate and utilise knowledge within the science and research, higher education and industry sectors through investment in research infrastructure, skill development and promoting collaboration both within Australia and internationally
Source of Available Appropriations | 2006-2007 | 2007-2008 | 2008-2009 |
$ | $ | $ | |
Appropriation Act (No. 1) 2008-2009 | - | - | 314,302,000 |
|
|
|
|
TOTAL APPROPRIATIONS AVAILABLE | - | - | 314,302,000 |
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|
|
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TOTAL AMOUNT SPENT | - | - | 307,252,650 |
TOTAL UNSPENT APPROPRIATIONS | - | - | 7,049,350 |
Appropriations Required: $ 21,766,395
Appropriations Available: $ 7,049,350
Amount required from AFM: $ 14,717,045
AFM Category: Appropriation Act (No. 1) 2008-2009, Part 3 14(1)(b)
Explanation of requirements from AFM:
In the 2009-10 Budget, the Government announced its decision to commit $15,000,000 in funding in 2008-09 for the establishment of the Royal Institution of Australia (RiAus).
The commitment was in response to the Premier of South Australia, the Hon Mike Rann MP's requests on 5 March 2009 and on 18 March 2009 to the Prime Minister seeking Commonwealth funding to help establish the RiAus as a national science exchange with the intention of becoming a leading national institution in the field of science and technology.
The funding is to be allocated from the Budget as a one-off contribution from the Australian Government to the RiAus towards its establishment and operation. The RiAus will be established in Adelaide and will bring together scientists, industry, government and the community to further public knowledge on the use of science and technology in everyday life. The Government's contribution is a one‑off endowment to the RiAus.
The Government in the Budget made a commitment to making the $15,000,000 payment in 2008-09 and therefore an Advance for the Finance Minister (AFM) is required to enable the payment to be made by 30 June 2009.
Urgent:
The funding for RiAus was announced as a 2009-10 budget measure on 12 May 2009 with the commitment to provide the funding in 2008-09. As such the funding was not provided for in any of the Appropriation Acts in 2008-09.
The Department is committed to making an estimated $21,766,395 in payments between now and the end of the financial year. Of this $21,766,395, the Department has only $7,049,350 in unspent Administered appropriation funds in Outcome 3, as at 15 June 2009. Of this amount, funds have been committed and are expected to be spent on the following programs before 30 June 2009:
- National Collaborative Research Infrastructure - $4,799,083
- Australia India Strategic Research Fund - $1,084,304
- International Science Linkages - $489,596
- Science Connections Program - $380,476
- Cooperative Research Centre - $12,936
From the $7,049,350, it is anticipated $282,955 will be unspent as at 30 June 2009 and will contribute to the $15,000,000 required for the RiAus. Therefore an AFM is required for the remaining $14,717,045 to enable the Department to make the necessary payments by 30 June 2009.
Unforeseen:
The Government’s decision to provide $15,000,000 in 2008-09 to establish RiAus as a national science exchange was announced as part of the 2009-10 Budget. The need for this expenditure was unforeseen at the time that the bills for Appropriation Act (No. 1) 2008-2009, Appropriation Act (No. 3) 2008-2009 and Appropriation Act (No. 5) 2008-2009 were finalised. There were no further appropriation bills finalised for 2008-09.