The instrument to which this explanatory statement relates

Determination to Reduce Appropriations Upon Request (No. 6 of 2010-2011)

Date instrument was made

1 February 2011

The legislative authority under which the instrument is made

Subsection 9(1) of Appropriation Act (No. 1) 2005‑2006 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.

A determination made under subsection 9(1) is a legislative instrument and is disallowable.

Purpose and effect of the instrument

The purpose of the instrument is to reduce an appropriation item that the Parliamentary Secretary to the Treasurer has advised the Minister for Finance and Deregulation is surplus to the requirements of the Australian Securities and Investments Commission.

Schedule 1 of the Instrument determines that the departmental item for the Australian Securities and Investments Commission in Appropriation Act (No. 1) 2005‑2006 is reduced by $5,000,000.

Background

The Parliamentary Secretary wrote to the Minister for Finance and Deregulation on 22 December 2010, requesting a determination to reduce the Australian Securities and Investments Commission’s (ASIC) departmental appropriation in Appropriation Act (No. 1) 2005‑2006 by $5,000,000.

The reduction in the departmental appropriation represents amounts provided to ASIC to establish a dedicated taskforce to undertake investigations and civil litigation of matters arising from the collapse of the HIH Insurance Group.  The investigation is now completed and $5,000,000 of the original appropriation is no longer required.

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 Australian Securities and Investments Commission was consulted in the preparation of this Instrument.