Explanatory Statement
Appropriation Act (No. 1) 2006-2007, subsection 9(1) – Reduction of appropriations upon request
The instrument to which this explanatory statement relates
This explanatory statement relates to an instrument (the instrument) entitled “Determination to Reduce Appropriation Upon Request”, dated 29 June 2007 and numbered 10 of 2006-2007.
The legislative authority under which the instrument is made
Section 9 of Appropriation Act (No. 1) 2006-2007 enables the Finance Minister to make a determination reducing a departmental item for an entity upon receipt of a written request from the Minister responsible or, in the case of an entity the Finance Minister is responsible for, the Chief Executive.
The provisions were included in the Appropriation Acts to enable excess departmental appropriation items to be extinguished.
Excess appropriation may arise where, for example:
- An amount is reclassified and appropriated again under another kind of appropriation;
- Efficiency savings result in a programme costing less than expected; and
- A programme under Government policy is abolished prior to the appropriation being expensed.
In accordance with subsection 9(5) and subsection 9(6) of Appropriation Act (No. 1) 2006-2007 a determination issued by the Finance Minister cannot reduce an appropriation item by more than the lesser of the amount requested by the responsible Minister or Chief Executive (as appropriate), and the balance of the appropriation item remaining in the Consolidated Revenue Fund.
Purpose of the instrument
The instrument directs that departmental items for the Australian Customs Service (ACS) in Appropriation Act (No. 1) 2006-2007 be reduced by $20,817,000.
Background
On 30 April 2007, the Minister for Justice and Customs (the Minister) wrote to the Minister for Finance and Administration seeking a reduction of ACS’s departmental items in Appropriation Act (No. 1) 2006-2007 by $20,817,000. This reduction relates to a fall in the number of foreign fishers entering Australian waters, reducing the need for ACS to incur costs related to the transport and processing of Illegal Foreign Fishers, undertake Coastwatch patrols and respond to onshore incursions.
Notes on the instrument
The instrument provides that the appropriation items in column 1 for the entity in column 2 are reduced in response to a request made by the Minister in column 4 by the amounts listed in column 6.
In accordance with the Legislative Instruments Act 2003, ACS was consulted in the preparation of this instrument.