The instrument to which this explanatory statement relates

Determination to Reduce Appropriations Upon Request
(No. 11 of 2011-2012)

Date instrument was made

11 May 2012

The legislative authority under which the instrument is made

Subsection 10(2) of Appropriation Act (No. 1) 2009-2010 enables the Finance Minister to make a determination reducing the departmental item for an agency by the amount specified in the Determination, upon receipt of a written request from the Minister responsible for that agency.

Subsection 10(2) of Appropriation Act (No. 1) 2010-2011 enables the Finance Minister to make a determination reducing the departmental item for an agency by the amount specified in the Determination, upon receipt of a written request from the Minister responsible for that agency.

Determinations made under this subsection are legislative instruments and are disallowable.

Purpose and effect of the instrument

The purpose of the instrument is to reduce appropriation items that the Minister for Foreign Affairs has advised the Finance Minister were agreed by Government as a reduction to Department of Foreign Affairs and Trade (DFAT) expenditure for 2011-12.

Schedule 1 determines that the departmental item for DFAT in Appropriation Act (No. 1) 2009-2010 be reduced by $52,270,253.

Schedule 2 determines that the departmental item for DFAT in Appropriation Act (No. 1) 2010-2011 be reduced by $13,576,013.

Background

The Minister for Foreign Affairs wrote to the Finance Minister on 9 April 2012 requesting a determination to reduce appropriation items provided to DFAT in 2011-12, consistent with Government decisions made and announced in the context of the 2011-12 Budget. These reductions to the departmental item appropriations relate to DFAT’s compliance with the ‘Australian Government Foreign Exchange Risk Management Guidelines’ whereby DFAT’s departmental funding is subject to adjustment on a “no win, no loss” basis for realised foreign exchange losses and gains.

Notes on the Instrument

The Schedules to the Instrument contain tables listing the affected agency in column 1, the Appropriation Act and appropriation item in column 2, which through the request by the responsible Minister in column 3, is reduced by the amount in column 4.

In accordance with the Legislative Instruments Act 2003, Defence was consulted in the preparation of this Instrument.

Human Rights Impact Statement

This determination reduces appropriated money from Appropriation Act (No. 1) 2009-2010 and Appropriation Act (No. 1) 2010-2011.

This determination does not engage any of the applicable rights or freedoms outlined in the Human Rights (Parliamentary Scrutiny) Act 2011.

This determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 as it does not raise any human rights issues.