The instrument to which this explanatory statement relates

Determination to Reduce Appropriations Upon Request (No. 4 of 2010-2011)

Date instrument was made

1 February 2011

The legislative authority under which the instrument is made

Subsection 10(2) of Appropriation Act (No. 1) 2009‑2010 enables the Minister for Finance and Deregulation to make a determination reducing a 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 11(1) of Appropriation Act (No. 4) 2004‑2005 enables the Minister for Finance and Deregulation to make a determination reducing an administered assets and liabilities 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 subsection 10(2) and subsection 11(1) are legislative instruments and are disallowable.

Purpose and effect of the instrument

The purpose of the instrument is to reduce appropriation items that the Attorney-General has advised the Minister for Finance and Deregulation are surplus to the requirements of the Attorney-General’s Department.

Schedule 1 of the Instrument determines that the departmental item for the Attorney-General’s Department in Appropriation Act (No. 1) 2009‑2010 be reduced by $805,257.55.

Schedule 2 of the Instrument determines that the administered assets and liabilities item for the Attorney-General’s Department in Appropriation Act (No. 4) 2004‑2005 be reduced by $20,200,000.

Background

The Attorney-General wrote to the Minister for Finance and Deregulation on 23 December 2010 requesting a determination to reduce AGD’s departmental item in Appropriation Act (No. 1) 2009-2010 and the AGD’s administered assets and liabilities item in Appropriation Act (No. 4) 2004-2005.

The reduction in the departmental appropriation represents a shortfall in administered revenue in 2009‑10 relating to the National Classification Scheme.  A cost recovery arrangement between the Department of Finance and Deregulation and AGD requires revenue shortfalls to be offset by a reduction in related AGD departmental appropriation.

Background (continued)

The surplus administered assets and liabilities appropriation of $20,200,000 was provided for the now defunct Christmas Island Space Station project.  Cabinet agreed that the surplus appropriation be deducted from AGD’s 2004-05 capital appropriation.

Notes on the Instrument

The Schedules to the Instrument contain a table 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, the Attorney-General’s Department was consulted in the preparation of this Instrument.