Explanatory Statement
Appropriation Act (No. 3) 2003-2004, subsection 10(2) – Reduction of appropriations from prior years upon request
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 26 June 2007 and numbered 14 of 2006-2007.
The legislative authority under which the instrument is made
Section 10 of Appropriation Act (No. 3) 2003-2004 and section 9 of Appropriation Act (No. 1) 2006-2007 enable 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 for which the Finance Minister is responsible, 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 subsections 10(6) and 10(7) of Appropriation Act (No. 3) 2003-2004 and subsections 9(5) and 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 Commonwealth Director of Public Prosecutions (CDPP) in Appropriation Act (No. 3) 2002-2003 be reduced by $598,000. The instrument also directs that departmental items for the CDPP in Appropriation Act (No. 1) 2006-2007 be reduced by $1,157,000.
Background
On 29 May 2007, the Attorney-General (the Minister) wrote to the Minister for Finance and Administration seeking a reduction of the CDPP’s departmental items in Appropriation Act (No. 3) 2002-2003 by $598,000. This reduction relates to excess funding no longer required for the provision of advice on offences and the prosecution of matters arising from the Interim Taskforce for the Building and Construction Industry.
The Minister also sought a reduction of the CDPP’s departmental items in Appropriation Act (No. 1) 2006-2007 by $1,157,000. This reduction is due to lower prosecution levels associated with fewer apprehensions of illegal foreign fishers in Australia’s Northern Fishery.
Notes on the instrument
The instrument provides that the appropriation item in column 1 for the entity in column 2 is 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, the CDPP has been consulted in the preparation of this instrument.