Asian Development Fund Act 1987

Overview

The Asian Development Fund Act 1987 was enacted to facilitate Australia's contribution to the Asian Development Fund through the Asian Development Bank (ADB). This Act was passed by the Queen, with the assent of both the Senate and the House of Representatives of the Commonwealth of Australia, aiming to enable a significant financial commitment to the ADB. The Act empowers the Minister to notify the ADB of Australia's intention to contribute up to $410,000,000 to the Fund, supporting regional development and economic growth in Asia. The payments are to be made via non-negotiable, non-interest-bearing promissory notes issued by the Treasurer, with the necessary funds appropriated from the Consolidated Revenue Fund. The overarching policy objective, as implied by the Act's provisions, is to support international development and economic collaboration through financial contributions to multilateral institutions.

Scope and Application

The Asian Development Fund Act 1987 authorises the Australian government to contribute to the Asian Development Fund through the Asian Development Bank (ADB). The Act applies specifically to the Minister and the Treasurer, who are authorised to notify the ADB of Australia's intention to contribute up to a specified aggregate amount and to issue promissory notes for the payment of these contributions respectively. The geographic reach of the Act is limited to the Commonwealth of Australia and its interaction with the ADB. The Act does not specify exclusions, exemptions, or thresholds beyond the aggregate contribution limit and the nature of the promissory notes. The Act does not explicitly extend or restrict its application through subordinate instruments, though such instruments may be used to implement the provisions outlined in the Act.

Key Provisions

The Asian Development Fund Act 1987 (section 1) establishes the legal framework for Australia's contribution to the Asian Development Fund (ADF) managed by the Asian Development Bank (section 3). Under section 4, the Minister is authorised to notify the Bank of Australia's intention to contribute up to a total of $410,000,000 to the ADF. This notification initiates the process for Australia's financial support to the Fund. In order to facilitate the payment of this contribution, section 5 allows the Treasurer to issue promissory notes on behalf of the Commonwealth. These notes, as detailed in subsection (5)(a), must be payable to the Bank and are non-negotiable and non-interest-bearing, with the payment being made at par value upon demand (subsection (5)(b) and (c)). The Act imposes several obligations on the relevant parties. The Minister, acting on behalf of Australia, must formally notify the Bank of the contribution as outlined in section 4. Concurrently, the Treasurer, under section 5, is required to issue the necessary promissory notes to effect the payment of the contribution. The appropriation of funds from the Consolidated Revenue Fund, as stipulated in section 6, ensures that the financial resources are legally allocated for the intended purpose. This section mandates that the money required for these payments be sourced from the Consolidated Revenue Fund, thereby formalising the financial commitment. Failure to comply with the provisions of the Act may result in significant legal consequences. Although specific offences and penalties are not explicitly detailed within the Act, breaches of the financial obligations outlined could potentially lead to civil or criminal liability. Such liability might encompass actions for non-performance of statutory duties or other related legal actions under Australian law. The precise consequences would depend on the nature and extent of the breach, as well as the applicable legal principles and precedents at the time.