EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
The instrument to which this explanatory statement relates | Determination to Reduce Appropriations Upon Request (No.1 of 2009-2010) |
Date instrument was made | 8 February 2010 |
The legislative authority under which the instrument is made | Subsection 10(2) of annual appropriation Acts for ordinary annual services (eg. No. 1 and No. 3) enable the Minister for Finance and Deregulation (Finance Minister) to make a determination reducing a departmental item. A determination made under subsection 10(2) must be in accordance with a written request made to the Finance Minister by the responsible Minister for the entity. A determination made under subsection 10(2) is a Legislative Instrument and is disallowable. |
Purpose and effect of the instrument | Schedule 1, Item 1 of the instrument determines that the departmental item for the Department of the Prime Minister and Cabinet (PM&C) in Appropriation Act (No.1) 2009-2010 be reduced by $2,406,823. |
Background | The Parliamentary Secretary to the Prime Minister wrote to the Finance Minister on 19 January 2010 requesting a determination to reduce PM&C’s departmental item under Appropriation Act (No. 1) 2009-2010. The reductions relate to: (a) An unspent appropriation balance of $1,592,397 for the Asia Pacific Economic Cooperation (APEC) Taskforce, which was funded on a “no win / no loss” basis. (b) An unspent appropriation balance of $814,426 for the Community Cabinets measure, which was also funded on a “no win / no loss” basis. |
Notes on the Instrument | Schedule 1 to the instrument contains a table listing the affected agency in column 1, the appropriation Act and appropriation item in column 2, the legislative authority in column 3, which through the request by the responsible Minister in column 4, is reduced by the amount in column 5. In accordance with the Legislative Instruments Act 2003, PM&C was consulted in the preparation of this Instrument. |
Overview
The Determination to Reduce Appropriations Upon Request (No. 1 of 2009-2010) was enacted on 8 February 2010 under subsection 10(2) of annual appropriation Acts for ordinary annual services, as per the authority granted to the Minister for Finance and Deregulation. This legislative instrument was introduced to address the issue of unspent appropriations within the Department of the Prime Minister and Cabinet (PM&C) for the financial year 2009-2010. Specifically, it aimed to adjust the departmental item to reflect the unutilised funds from specific initiatives that were funded on a “no win / no loss” basis. The policy objective was to ensure fiscal efficiency by reallocating unspent funds that were no longer required.
The reductions were implemented following a written request from the Parliamentary Secretary to the Prime Minister to the Finance Minister, dated 19 January 2010. The reductions totalled $2,406,823, comprising an unspent appropriation balance of $1,592,397 for the Asia Pacific Economic Cooperation (APEC) Taskforce and $814,426 for the Community Cabinets measure, both of which had been funded on a contingency basis. The determination was made in accordance with the Legislative Instruments Act 2003, which requires consultation with the affected agency, in this case, PM&C.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No.1 of 2009-2010) applies specifically to the Department of the Prime Minister and Cabinet (PM&C) within the context of the Appropriation Act (No.1) 2009-2010. This legislative instrument was enacted under subsection 10(2) of annual appropriation Acts for ordinary annual services and pertains to the reduction of a departmental item following a written request by the responsible Minister, in this case, the Parliamentary Secretary to the Prime Minister. The determination reduces the PM&C’s departmental item by $2,406,823, as per the request submitted on 19 January 2010. The reductions specified in the determination relate to unspent appropriations for the Asia Pacific Economic Cooperation (APEC) Taskforce and the Community Cabinets measure, both of which were funded on a “no win / no loss” basis. This instrument is a Legislative Instrument and, as such, is disallowable. Additionally, the instrument adheres to the requirements of the Legislative Instruments Act 2003, which includes consultation with the affected agency, in this instance, the PM&C.
Key Provisions
The Determination to Reduce Appropriations Upon Request (No. 1 of 2009-2010) (F2010L00493) was made under subsection 10(2) of annual appropriation Acts for ordinary annual services. This determination reduces a departmental item in response to a written request by the responsible Minister. Specifically, Schedule 1, Item 1 of the instrument reduces the departmental item for the Department of the Prime Minister and Cabinet (PM&C) under the Appropriation Act (No. 1) 2009-2010 by $2,406,823. This reduction was prompted by the Parliamentary Secretary to the Prime Minister, who requested the Finance Minister to reduce the appropriation due to unspent balances from specific projects.
The obligations and requirements imposed by this legislation necessitate that any reduction in appropriation must follow a formal request from the responsible Minister. The Finance Minister, upon receiving such a request, must ensure that the reduction aligns with the statutory provisions of the annual appropriation Acts. In this case, the PM&C was consulted as required by the Legislative Instruments Act 2003, ensuring transparency and adherence to procedural requirements. The reductions are detailed in Schedule 1, which lists the affected agency, the appropriation Act, the legislative authority, the request, and the amount of the reduction.
Failure to comply with the provisions of the Act may lead to civil or criminal consequences. The Legislative Instruments Act 2003 mandates consultation with the affected agency, PM&C in this instance, which ensures that the determination process is fair and lawful. The Act also stipulates that the determination is a Legislative Instrument and is subject to disallowance. If the determination is found to be in breach of any legal requirements, it could be disallowed by Parliament, and there may be further repercussions depending on the nature of the breach. While specific penalties are not detailed in the explanatory statement, the potential for disallowance and the necessity to follow proper procedural steps underscore the seriousness of ensuring compliance.