Overview
The Determination to Reduce Appropriations Upon Request (No.6 of 2009-2010), made on 21 February 2010 by the Minister for Finance and Deregulation, addresses a specific budgetary adjustment concerning the Defence Materiel Organisation (DMO). Enacted under the authority of subsection 10(2) of annual appropriation Acts for ordinary annual services, this legislative instrument was designed to facilitate the reduction of a departmental item upon a written request from the responsible Minister. In this instance, the Minister for Defence requested a reduction in the DMO's appropriation, which was originally intended for payments related to the establishment of School Pathways Programs in Western Australia and South Australia. As these payments are now managed by the Department of the Treasury under a National Partnership Agreement, the appropriation was deemed no longer necessary. The purpose of this determination is to reflect the reallocation of funding responsibilities and ensure fiscal efficiency.
The policy objective underpinning this legislative instrument is to provide a mechanism for the Finance Minister to adjust departmental budgets in response to changing operational needs and funding arrangements, thereby ensuring that public resources are allocated appropriately. This instrument not only formalises the requested budgetary change but also adheres to the statutory requirement for consultation with the affected agency, as mandated by the Legislative Instruments Act 2003. This ensures transparency and accountability in the budgetary process.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No. 6 of 2009-2010) applies to the Defence Materiel Organisation (DMO), specifically reducing its departmental item under the Appropriation Act (No. 1) 2009-2010. This reduction is a result of a written request made by the Minister for Defence to the Minister for Finance and Deregulation on 11 February 2010, in accordance with subsection 10(2) of annual appropriation Acts for ordinary annual services. The purpose of this reduction is to account for the transfer of funding for the School Pathways Programs, which is now handled by the Department of the Treasury under a National Partnership Agreement, thereby making the original appropriation for DMO redundant. The instrument affects the geographic and jurisdictional reach by specifically targeting the DMO within the Commonwealth of Australia, as the DMO is a federal entity. There are no stated exclusions or exemptions within the text, and the reduction is clearly specified within the legislative instrument itself without extension through subordinate instruments.
Key Provisions
The Determination to Reduce Appropriations Upon Request (No.6 of 2009-2010) (Instrument) primarily targets Schedule 1, Item 1, which reduces the departmental item for the Defence Materiel Organisation (DMO) under the Appropriation Act (No. 1) 2009-2010 by $2,290,000. This reduction was prompted by a request from the Minister for Defence, as per section 10(2) of the annual appropriation Acts for ordinary annual services, allowing the Minister for Finance and Deregulation to make such a determination following a written request from the responsible Minister for the entity. The Instrument is a Legislative Instrument and is subject to disallowance.
In terms of obligations, the Act mandates that any reduction in appropriations must be made in accordance with a written request from the responsible Minister, who in this case is the Minister for Defence. The Minister for Finance and Deregulation must ensure that the reduction aligns with the legislative authority granted by subsection 10(2). Additionally, the Act requires that the affected entity, the DMO, is consulted during the preparation of the Instrument, as mandated by the Legislative Instruments Act 2003.
Regarding offences, penalties, or consequences for non-compliance, the Act does not specify any criminal penalties for breach. However, the legislative nature of the Instrument means that any improper or unauthorised reduction of appropriations could lead to administrative or political consequences, including the potential disallowance of the Instrument. The Act itself does not outline specific penalties for such breaches, but the process of disallowance is a significant administrative remedy available to address any non-compliance.
In summary, the Determination to Reduce Appropriations Upon Request (No.6 of 2009-2010) outlines the specific reduction of $2,290,000 from the DMO's departmental item in the Appropriation Act (No. 1) 2009-2010, following a written request from the Minister for Defence. The process involves strict adherence to the legislative requirements, including consultation with the affected entity and the disallowance mechanism provided under the Legislative Instruments Act 2003. While the Act does not detail specific penalties for non-compliance, the disallowance of the Instrument serves as a key consequence for any improper reductions.