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. 12 of 2007-2008) dated 24 June 2008.
The legislative authority under which the instrument is made
Subsection 9(2) of Appropriation Act (No. 1) 2005-2006, Appropriation Act (No. 1) 2006-2007 and Appropriation Act (No. 1) 2007-2008 enables the Minister for Finance and Deregulation (Finance Minister) 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 Chief Executive of an entity for which the Finance Minister is responsible.
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 programme costing less than expected; and
- A program under Government policy is abolished prior to the appropriation being expensed.
In accordance with subsection 9(5) of Appropriation Act (No. 1) 2005-2006, Appropriation Act (No. 1) 2006-2007 and Appropriation 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 Chief Executive, 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 Chief Executive 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 Chief Executive 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(2) 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