Explanatory Statement
Appropriation (Parliamentary Departments) Act (No. 1) 2004-2005, subsection 11(1) – Reduction of appropriations upon request
Appropriation (Parliamentary Departments) Act (No. 1) 2007-2008, subsection 11(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 9 April 2008 and numbered 3 of 2007-2008.
The legislative authority under which the instrument is made
Section 11 of Appropriation (Parliamentary Departments) Act (No. 1) 2004-2005 and Appropriation (Parliamentary Departments) Act (No. 1) 2007-2008 enables the Finance Minister to make a determination reducing a departmental item for an entity upon receipt of a written request by the responsible Presiding Officer.
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 11(1) of Appropriation (Parliamentary Departments) Act (No. 1) 2004-2005 and Appropriation (Parliamentary Departments) Act (No. 1) 2007-2008, a determination issued by the Finance Minister cannot reduce an appropriation item by more than the lesser of the amount requested by the responsible Presiding Officer, and the balance of the appropriation item remaining in the Consolidated Revenue Fund.
Purpose of the instrument
The instrument directs that the departmental items for the Department of the Senate in Appropriation (Parliamentary Departments) Act (No. 1) 2004-2005 be reduced by $11,316,010 and in Appropriation (Parliamentary Departments) Act (No. 1) 2007-2008 be reduced by $493,000.
Background
On 13 March 2008, the President of the Senate wrote to the Minister for Finance and Deregulation requesting a determination to reduce the Senate’s departmental items under Appropriation (Parliamentary Departments) Act (No. 1) 2004-2005 by $11,316,010 and Appropriation (Parliamentary Departments) Act (No. 1) 2007-2008 by $493,000. The reduction in 2004-2005 appropriations is due to surplus unspent appropriations that will not be required for the replacement of non-current assets or the settling of non-current employee entitlements. The reduction in 2007-2008 appropriations is due to savings resulting from reduced sittings owing to the Federal Election and the application of the one-off two per cent efficiency dividend.
Notes on the instrument
The instrument provides that the appropriation items in column 1 for the entity in column 2 be reduced in response to a request made by the Presiding Officer in column 4 by the amounts listed in column 6.
In accordance with the Legislative Instruments Act 2003, the Department of the Senate was consulted in the preparation of this instrument.