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 |
Date instrument was made | 9 December 2011 |
The legislative authority under which the instrument is made
| Subsection 10(2) of Appropriation Act (No. 1) 2010-2011 enables the Finance Minister to make a determination reducing the 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 13(2) of Appropriation Act (No. 2) 2010-2011 enables the Minister for Finance and Deregulation (Finance Minister) to make a determination reducing an other departmental item (Equity Injections) for an agency by the amount specified in the Determination, upon receipt of a written request from the Minister responsible for that agency. Subsection 13(2) of Appropriation Act (No. 4) 2010-2011 enables the Minister for Finance and Deregulation (Finance Minister) to make a determination reducing an other departmental item (Equity Injections) 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 this subsection are legislative instruments and are disallowable. |
Purpose and effect of the instrument
| The purpose of the instrument is to reduce appropriation items that the Minister for Defence has advised the Finance Minister were agreed by Government as a reduction to Department of Defence (Defence) expenditure for 2010-11. Schedule 1 determines that the departmental item for Defence in Appropriation Act (No. 1) 2010-2011 be reduced by $1,111,633,000. Schedule 2 determines that the other departmental item (Equity Injections) for Defence in Appropriation Act (No. 2) 2010-2011 be reduced by $822,254,000. Schedule 3 determines that the other departmental item (Equity Injections) for Defence in Appropriation Act (No. 4) 2010-2011 be reduced by $112,800,000. |
Background | The Minister for Defence wrote to the Finance Minister on 26 September 2011 requesting a determination to reduce appropriation items provided to Defence in 2010-11, consistent with Government decisions made and announced in the context of the 2011-12 Budget. The reduction in expenditure relates to re-aligning Defence expenditure for Capital Investment Reprogramming, reduced operating expenditure, savings as a result of a lower purchase cost for the C17 Globemaster III aircraft and a handback related to foreign exchange adjustments. In addition, the Minister for Defence requested further reductions related to the end of financial year reconciliations for Defence Operations and foreign exchange, both of which are appropriated to Defence (including DMO) under the “no win/ no-loss” funding arrangements. |
Notes on the Instrument | The Schedules to the Instrument contain tables 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, Defence was consulted in the preparation of this Instrument. |
Human Rights Impact Statement | This determination reduces appropriated money from Appropriation Act (No. 1) 2010-11, Appropriation Act (No. 2) 2010-2011 and Appropriation Act (No. 4) 2010-2011. This determination does not engage any of the applicable rights or freedoms outlined in the Human Rights (Parliamentary Scrutiny) Act 2011. This determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 as it does not raise any human rights issues. |