Explanatory Statement
The instrument to which this explanatory statement relates
This explanatory statement relates to an instrument (the instrument) entitled “Determination to Reduce Appropriations Upon Request (No. 11 of 2007-2008) dated 24 June 2008.
The legislative authority under which the instrument is made
Subsection 9(1) of Appropriation Act (No. 1) 2006-2007, Appropriation Act (No. 1) 2007-2008, Appropriation Act (No. 3) 2007-2008 and Appropriation (Northern Territory National Emergency Response) Act (No. 1) 2007-2008 enables the Minister for Finance and Deregulation to make a Determination reducing a departmental item for an entity by the amount specified in the Determination, upon receipt of a written request from the Minister responsible for that entity.
The provision was 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 program costing less than expected; and
- A programme under Government policy is abolished prior to the appropriation being expensed.
In accordance with subsection 9(5) of Appropriation Act (No. 1) 2006-2007, Appropriation Act (No. 1) 2007-2008, Appropriation Act (No. 3) 2007-2008 and Appropriation (Northern Territory National Emergency Response) Act (No. 1) 2007-2008, a determination issued by the Finance Minister under subsection 9(1) cannot reduce an appropriation item by greater than the lesser of the amount requested by the responsible Minister, and the balance of the appropriation item remaining in the Consolidated Revenue Fund.
Purpose of the instrument
The instrument determines that the appropriation items for the entities listed in the Schedules are reduced by the amounts indicated in Column 5 of each provision.
Background
The Minister(s) identified in Column 4 of each provision wrote to the Minister for Finance and Deregulation requesting a determination to reduce the departmental item appropriations for the entities listed in Column 1.
Notes on the instrument
The Schedules to the instrument list the entities to which a determination applies. The entities are listed alphabetically, by portfolio.
Each entity’s reduction determination table is contained within an individual provision. Each provision provides that the entity in column 1, has the appropriation item in column 2, under the legislative authority in column 3, through the request by the responsible Minister in Column 4, reduced, by the amount in column 5.
The instrument reflects entity and portfolio names contained in the appropriation Acts under which reductions are made, noting that these may have subsequently been changed by, for example, machinery of government changes
In accordance with the Legislative Instruments Act 2003, each entity identified in Column 1 of the instrument was consulted in the preparation of this instrument.
Disallowance
Subsection 9(9) of the Appropriation Acts that this determination is made under provides that a determination made under subsection 9(1) is a legislative instrument and despite subsection 44(2) of the Legislative Instruments Act 2003, (which provides that Instruments made under Annual Appropriation Acts are not subject to disallowance under section 42 of the Legislative Instruments Act 2003) section 42 of that Act applies to this Determination
Overview
The Determination to Reduce Appropriations Upon Request (No. 11 of 2007-2008) was enacted in 2008 under the authority of the Appropriation Acts of 2006-2007 and 2007-2008, as well as the Appropriation (Northern Territory National Emergency Response) Act (No. 1) 2007-2008. This legislative instrument was introduced to address the issue of excess appropriations, which can arise due to various reasons such as reclassification of funds, efficiency savings leading to reduced program costs, or the abolition of government programs before their appropriations are expensed. The primary objective of this instrument is to facilitate the reduction of departmental item appropriations by the Minister for Finance and Deregulation, upon a written request from the respective Minister responsible for the entity. The reductions are constrained by the lesser of the amount requested and the balance remaining in the Consolidated Revenue Fund. The determinations listed in the schedules of the instrument specify the entities, the appropriations to be reduced, and the amounts to be reduced, reflecting the names and portfolio entities as they appeared in the relevant appropriation Acts at the time.
Scope and Application
The "Determination to Reduce Appropriations Upon Request (No. 11 of 2007-2008) dated 24 June 2008" applies to specific entities listed in the Schedules of the instrument, reducing their appropriation items by the amounts specified. This instrument is made under the authority of the Appropriation Acts (No. 1) 2006-2007, Appropriation Act (No. 1) 2007-2008, Appropriation Act (No. 3) 2007-2008 and Appropriation (Northern Territory National Emergency Response) Act (No. 1) 2007-2008, enabling the Minister for Finance and Deregulation to reduce departmental appropriations upon request from the relevant Minister. The instrument aims to extinguish excess appropriation items that arise from various circumstances, including reclassification of amounts, efficiency savings, or the abolition of government programs. The reductions are limited to the lesser of the amount requested by the responsible Minister or the balance of the appropriation item remaining in the Consolidated Revenue Fund. Each entity listed in the Schedules is identified by name and portfolio, and the instrument includes the specific reduction amounts as requested. The instrument also complies with the Legislative Instruments Act 2003, with each entity consulted during the preparation process, and despite certain exemptions, the instrument remains subject to disallowance under section 42 of the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of this legislation are found under subsection 9(1) of the Appropriation Act (No. 1) 2006-2007, Appropriation Act (No. 1) 2007-2008, Appropriation Act (No. 3) 2007-2008, and the Appropriation (Northern Territory National Emergency Response) Act (No. 1) 2007-2008. These sections empower the Minister for Finance and Deregulation to reduce a departmental item for an entity by the amount specified in the Determination, upon receipt of a written request from the Minister responsible for that entity (subsection 9(1)). This process is designed to eliminate excess departmental appropriation items, which may arise from reclassification of amounts, efficiency savings, or the abolition of a government program before the appropriation is expensed (subsection 9(5)).
The obligations imposed by this Act primarily concern the Minister for Finance and Deregulation and the Minister responsible for the entity in question. The Minister responsible must submit a written request to the Minister for Finance and Deregulation to reduce the appropriation item for their entity. The Minister for Finance and Deregulation must then issue a Determination that reflects the requested reduction, but cannot reduce the appropriation item by more than the lesser of the requested amount or the balance of the appropriation item in the Consolidated Revenue Fund. This process ensures that any reduction in appropriations is both authorised and within the allowable limits.
Failure to comply with the requirements of the Determination may lead to legal consequences. While the legislation does not explicitly outline specific offences or penalties for non-compliance, the overarching framework of the Appropriation Acts and the Legislative Instruments Act 2003 implies that breaches could result in civil or criminal penalties. The Determination itself is subject to disallowance under section 42 of the Legislative Instruments Act 2003, despite the general exemption for instruments made under Annual Appropriation Acts. This means that if a Determination is found to be invalid or beyond the legislative authority, it can be disallowed by either House of Parliament. Such disallowance could lead to further legal scrutiny and potential penalties for those involved in the creation or enforcement of the Determination.