Determination to Reduce Appropriation Upon Request (No. 10 of 2006-2007)

Overview

The Appropriation Act (No. 1) 2006-2007 was enacted to allow for the reduction of departmental appropriations based on requests from relevant Ministers or the Chief Executive, as applicable. This Act addresses the issue of excess appropriations that may arise due to various circumstances such as reclassification of funds, efficiency savings, or the abolition of government programs before their appropriations are expensed. The enactment of this Act by the Parliament aimed to provide a mechanism for the Finance Minister to adjust departmental appropriations accordingly, ensuring that funds are not allocated beyond what is necessary or feasible. The explanatory statement for the instrument dated 29 June 2007, numbered 10 of 2006-2007, clarifies that it reduces the appropriation items for the Australian Customs Service (ACS) by $20,817,000, as requested by the Minister for Justice and Customs. This reduction was prompted by a decrease in the number of foreign fishers entering Australian waters, which subsequently reduced the need for ACS to incur costs associated with the transport and processing of illegal foreign fishers, Coastwatch patrols, and responses to onshore incursions. The policy objective behind this instrument is to align departmental appropriations more closely with actual needs and operational requirements.

Scope and Application

The "Determination to Reduce Appropriation Upon Request" under the Appropriation Act (No. 1) 2006-2007 specifically applies to the Australian Customs Service (ACS), enabling the Finance Minister to reduce the departmental appropriation items for ACS by a requested amount, not exceeding the lesser of the requested amount or the balance remaining in the Consolidated Revenue Fund. This instrument is pertinent for the Commonwealth and is enacted to address instances where appropriations exceed the actual requirements of government programs, such as when there is a reclassification of funds, efficiency savings, or policy changes leading to the abolition of a program before its appropriation is expensed. The authority for such reductions is derived from section 9 of the Appropriation Act (No. 1) 2006-2007, which allows for the adjustment of appropriations upon a written request from the relevant Minister or Chief Executive. This particular instrument was issued in response to a reduction in the number of foreign fishers entering Australian waters, resulting in lower costs for ACS operations related to the transport and processing of illegal foreign fishers, Coastwatch patrols, and onshore incursion responses.

Key Provisions

The main operative sections of this legislation are sections 9(1) of the Appropriation Act (No. 1) 2006-2007, which empower the Finance Minister to reduce departmental appropriation items in response to a written request from the relevant Minister or Chief Executive. This is intended to address instances where there is excess appropriation, such as when a program costs less than expected or is abolished before the appropriation is expensed. The specific determination to reduce appropriation items for the Australian Customs Service (ACS) by $20,817,000 is outlined in the instrument dated 29 June 2007, which was made under the authority of this section. The Act imposes certain obligations and requirements on the parties involved. Firstly, the Finance Minister must act on the written request from the relevant Minister or Chief Executive to reduce the appropriation items. Secondly, the responsible Minister or Chief Executive must provide a written request specifying the amount of the reduction required. This request must be based on legitimate reasons such as efficiency savings or a reduction in program costs. The Act also requires that the reduction cannot exceed the amount requested by the Minister or Chief Executive, nor can it exceed the balance of the appropriation item remaining in the Consolidated Revenue Fund. Breaching the provisions of this Act could result in civil or criminal consequences. If a determination is made that exceeds the requested amount or the balance in the Consolidated Revenue Fund, it could be deemed invalid or subject to review. Additionally, any misuse of the appropriation process or failure to follow the prescribed procedures could lead to penalties as outlined in other relevant legislation. The exact penalties would depend on the nature and severity of the breach, but they could include fines or other administrative sanctions. The explanatory statement highlights that the instrument directs a reduction in departmental items for ACS by $20,817,000, following a request from the Minister for Justice and Customs. This reduction was due to a decrease in the number of foreign fishers entering Australian waters, thereby reducing the need for ACS to incur certain costs. The instrument was prepared in consultation with ACS, as required by the Legislative Instruments Act 2003. This ensures that the entity affected by the reduction had an opportunity to provide input, thereby maintaining transparency and fairness in the appropriation process.