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. 3 of 2008-2009) dated 7 August 2008.
The legislative authority under which the instrument is made
Subsection 9(1) of Appropriation 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 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 program under Government policy is abolished prior to the appropriation being expensed.
In accordance with subsection 9(5) of 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 Minister, and the balance of the appropriation item remaining in the Consolidated Revenue Fund.
Purpose of the instrument
The instrument determines that the appropriation item for the entity listed in the Schedule is reduced by the amount indicated in Column 5 of the provision.
Background
The Minister identified in Column 4 of the provision wrote to the Minister for Finance and Deregulation requesting a determination to reduce the departmental item appropriation for the entity listed in Column 1.
Notes on the instrument
The Schedules to the instrument list the entities to which a determination applies.
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, the Department of Innovation, Industry, Science and Research 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.