Asian Development Bank (Special Funds Contributions) Act 1970

Overview

The Asian Development Bank (Special Funds Contributions) Act 1970 was enacted to facilitate Australia's financial contributions to the Special Funds of the Asian Development Bank. This legislation was brought into effect by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia to address the need for Australia to participate in the financial initiatives of the Asian Development Bank. The Act allows the Treasurer, on behalf of the Commonwealth, to make agreements with the Bank for specific contributions to the Consolidated Special Funds, including the Multi-Purpose Special Fund and the Technical Assistance Special Fund, up to a total of ten million United States dollars. The policy objective is to support the Bank's operations and to ensure that Australian contributions are used effectively, either for financing goods and services from Australia or for employing Australian consultants and experts.

Scope and Application

The Asian Development Bank (Special Funds Contributions) Act 1970 is a Commonwealth Act that authorises the Treasurer to make specific contributions to the Special Funds of the Asian Development Bank (ADB). The Act applies to the Commonwealth of Australia and the Treasurer, who is empowered to enter into agreements with the ADB to allocate funds to the Bank's Consolidated Special Funds, including the Multi-Purpose Special Fund and the Technical Assistance Special Fund. The Act sets out the terms and conditions under which these contributions can be made, including the maximum amounts that can be contributed and the purposes for which these funds can be used, ensuring that the contributions are directed towards specific activities such as financing goods and services from Australia or procuring Australian consultants and experts for technical assistance operations. The Act does not specify any exclusions or exemptions, and its application is limited to the financial contributions outlined within its provisions. Any additional terms or conditions not covered by the Act may be addressed in the agreements executed between the Treasurer and the ADB.

Key Provisions

The Asian Development Bank (Special Funds Contributions) Act 1970 (the "Act") primarily authorises the Treasurer, on behalf of the Commonwealth, to enter into agreements with the Asian Development Bank (the "Bank") for Australia to contribute to two specific funds: the Multi-Purpose Special Fund and the Technical Assistance Special Fund of the Bank. According to section 4(1), the total contribution by Australia can be up to the equivalent of ten million United States dollars, with nine million seven hundred and fifty thousand dollars allocated to the Multi-Purpose Special Fund and two hundred and fifty thousand dollars to the Technical Assistance Special Fund. The Act specifies the terms under which these contributions can be made, including the method of payment and the conditions for the use of the contributed funds. Under section 5, the Act details the terms for contributions to the Multi-Purpose Special Fund, requiring these to be paid in three equal annual instalments starting in the year commencing 1 July 1970. It also allows for the payment of these instalments via non-negotiable, non-interest-bearing promissory notes issued to the Bank. Section 6, on the other hand, specifies that contributions to the Technical Assistance Special Fund must be used for financing the procurement of services from Australian consultants and experts, or for meeting related administrative expenses of the Bank. Both sections 5 and 6 underscore that the funds must be used in accordance with the agreements unless otherwise agreed upon by the Government of Australia. The Act imposes certain obligations and requirements on the parties involved. For instance, the Treasurer must ensure that any payments made by Australia under the agreements are appropriately appropriated from the Consolidated Revenue Fund, as outlined in section 7. Additionally, the Treasurer is authorised under section 8 to issue promissory notes to the Bank as stipulated in any agreement made under the Act. The Act does not specify any direct offences, penalties, or consequences for breach of its provisions. However, failure to comply with the terms of the agreement or misuse of the funds could potentially lead to financial repercussions or diplomatic issues with the Bank, although these are not explicitly detailed within the text of the Act itself.