Explanatory Statement
Appropriation Act (No. 2) 2005-2006, 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 23 February 2007 and numbered 5 of 2006-2007.
The legislative authority under which the instrument is made
Section 11 of Appropriation Act (No. 2) 2005-2006 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 agency in the Finance portfolio, 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 11(5) and subsection 11(6) of Appropriation Act (No. 2) 2005-2006, 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 equity injections for the Australian Communications and Media Authority (ACMA) in Appropriation Act (No. 2) 2005-2006 be reduced by $1,000,000.
Background
On 15 January 2007, the Minister for Communications, Information Technology and the Arts wrote to the Minister for Finance and Administration seeking a reduction of ACMA’s non-operating equity injection appropriation under Appropriation Act (No. 2) 2005-2006 by $1,000,000. This reduction relates to funds appropriated for the Protection for Submarine Telecommunications Cables measure. These funds are no longer required due to delays in implementation.
ACMA was established on 1 July 2005, taking on the functions performed by the Australian Broadcasting Authority (ABA) and the Australian Communications Authority (ACA). Under clause 9 of Schedule 4 of the Australian Communications and Media Authority (Consequential and Transitional Provisions) Act 2005, for the purposes of the operation of an Appropriation Act references to the ABA or the ACA are to be read as references to ACMA.
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, ACMA has been consulted in preparation of this instrument.