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.
Overview
The "Determination to Reduce Appropriations Upon Request (No. 3 of 2008-2009)" was enacted in 2008 as a legislative instrument under the Appropriation Act (No. 1) 2007-2008. This instrument was introduced to address the issue of excess appropriations, which can arise from various circumstances such as reclassification of funds, efficiency savings, or the abolition of a government program. The problem it addresses is ensuring that funds are accurately and efficiently allocated, preventing the retention of unneeded or unused appropriations. The instrument was enacted by the Minister for Finance and Deregulation, in response to a written request from the relevant Minister responsible for the entity in question. The primary policy objective is to facilitate the reduction of departmental appropriations where there is an identified surplus, thereby maintaining fiscal discipline and ensuring funds are only appropriated where necessary.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No. 3 of 2008-2009) pertains to entities specified in the Schedule, which have had their departmental appropriation items reduced by the amount detailed in Column 5 of the provision. This legislation applies to entities as listed in the instrument, following a request from the relevant Minister responsible for the entity as outlined in Column 4. The authority for this reduction stems from subsection 9(1) of the Appropriation Act (No. 1) 2007-2008, enabling the Minister for Finance and Deregulation to issue such a determination upon receiving a written request from the respective Minister. The purpose of this instrument is to adjust the appropriation items for the listed entities to reflect any excess appropriations, which may arise due to reclassification, efficiency savings, or the abolition of a government program. Importantly, the reduction cannot exceed the amount requested by the responsible Minister or the remaining balance of the appropriation item in the Consolidated Revenue Fund, as stipulated by subsection 9(5) of the Appropriation Act (No. 1) 2007-2008. The instrument is subject to disallowance under section 42 of the Legislative Instruments Act 2003.
Key Provisions
The Determination to Reduce Appropriations Upon Request (No. 3 of 2008-2009) dated 7 August 2008, pursuant to subsection 9(1) of the Appropriation Act (No. 1) 2007-2008, outlines the process for reducing departmental appropriations for specific entities. This is achieved through a written request from the Minister responsible for the entity to the Minister for Finance and Deregulation. The primary function of this instrument, as specified in the determination, is to reduce the appropriation item for the entities listed in the schedule by the amount specified in Column 5 of the relevant provision. The schedule lists each entity affected by the determination, detailing the appropriation item, the legislative authority, the requesting Minister, and the amount of the reduction.
The obligations under this Act require that the Minister for Finance and Deregulation can only reduce the appropriation item by the lesser of the amount requested by the responsible Minister and the remaining balance of the appropriation item in the Consolidated Revenue Fund, as stipulated in subsection 9(5) of the Appropriation Act. The determinations are made based on specific conditions such as reclassification of funds, efficiency savings, or the abolition of a government program before the appropriation is expensed. The document reflects the entity and portfolio names as they were under the appropriation acts at the time, though these may have changed due to factors such as machinery of government changes. The Department of Innovation, Industry, Science and Research was consulted in the preparation of this instrument, in accordance with the Legislative Instruments Act 2003.
Any breach of the provisions in this determination could result in legal consequences. As per subsection 9(9) of the Appropriation Acts, this determination is considered a legislative instrument and is subject to disallowance under section 42 of the Legislative Instruments Act 2003, despite the general exemption for instruments made under Annual Appropriation Acts. The penalties for non-compliance with the Act or the terms of the determination are not explicitly stated in the explanatory statement, but they could potentially include financial penalties, legal action, or other consequences as determined by the relevant authorities. The specifics of these consequences would depend on the nature and severity of the breach, and would be subject to the applicable laws and regulations.