Explanatory Statement
The instrument to which this explanatory statement relates
This explanatory statement relates to an instrument (the instrument) entitled “Determination to Reduce Appropriations Upon Request (No. 9 of 2007-2008) dated 24 June 2008.
The legislative authority under which the instrument is made
Subsection 10(2) of Appropriation Act (No. 3) 2003-2004 enables the Minister for Finance and Deregulation to make a Determination reducing a departmental item in a prior years Appropriation Act, listed in subsection 10(1) of Appropriation Act (No. 3) 2003-2004, for an entity, by the amount specified in the Determination, upon receipt of a written request from the Minister responsible for that entity.
The provision was included in the Appropriation Acts to enable excess departmental appropriation items to be extinguished.
Excess appropriation may arise where, for example:
- An amount is reclassified and appropriated again under another kind of appropriation;
- Efficiency savings result in a programme costing less than expected; and
- A program under Government policy is abolished prior to the appropriation being expensed.
In accordance with subsection 10(6) of Appropriation Act (No. 3) 2003-2004, a determination issued by the Finance Minister under subsection 10(2) cannot reduce an appropriation item by greater than the lesser of the amount requested by the responsible Minister, and the balance of the appropriation item remaining in the Consolidated Revenue Fund.
Purpose of the instrument
The instrument determines that the appropriation items for the entities listed in the Schedules are reduced by the amounts indicated in Column 5 of each provision.
Background
The Minister identified in Column 4 of each provision wrote to the Minister for Finance and Deregulation requesting a determination to reduce the departmental item appropriations for the entities listed in Column 1.
Notes on the instrument
The Schedules to the instrument list the entities to which a determination applies. The entities are listed alphabetically, by portfolio.
Each entity’s reduction determination table is contained within an individual provision. Each provision provides that the entity in column 1, has the appropriation item in column 2, under the legislative authority in column 3, through the request by the responsible Minister in Column 4, reduced, by the amount in column 5.
The instrument reflects entity and portfolio names contained in the appropriation Acts under which reductions are made, noting that these may have subsequently been changed by, for example, machinery of government changes
In accordance with the Legislative Instruments Act 2003, each entity identified in Column 1 of the instrument was consulted in the preparation of this instrument.
Disallowance
A Determination made under subsection 10(2) is a Legislative Instrument and is disallowable.
Overview
The Determination to Reduce Appropriations Upon Request (No. 9 of 2007-2008) dated 24 June 2008, is an instrument made under the legislative authority provided by Subsection 10(2) of the Appropriation Act (No. 3) 2003-2004. This Act was enacted to enable the Minister for Finance and Deregulation to reduce departmental items in a prior years Appropriation Act, listed in Subsection 10(1), for an entity by a specified amount upon receipt of a written request from the Minister responsible for that entity. The primary objective of this Act is to address the issue of excess departmental appropriations, which may arise from various scenarios such as reclassification of amounts, efficiency savings, or the abolition of a government program prior to the appropriation being expensed. The determination aims to ensure that such excess appropriations are extinguished effectively.
The instrument in question determines the reduction of appropriation items for entities listed in the Schedules by the amounts indicated in Column 5 of each provision. This instrument was enacted following requests from the relevant Ministers for Finance and Deregulation. It is important to note that the entities were consulted in the preparation of this instrument in accordance with the Legislative Instruments Act 2003. Additionally, as a Legislative Instrument, this Determination is disallowable under the same Act.
Scope and Application
The "Determination to Reduce Appropriations Upon Request (No. 9 of 2007-2008)" serves to reduce departmental appropriations for specific entities, as outlined in the instrument and its schedules. The legislation applies to entities listed in the schedules, which are reduced by the amounts specified in Column 5 of each provision. This determination is made pursuant to subsection 10(2) of the Appropriation Act (No. 3) 2003-2004, at the request of the Minister responsible for the respective entity, with the reduction limited to the lesser of the amount requested or the balance remaining in the Consolidated Revenue Fund. The entities are listed alphabetically by portfolio, and each provision details the entity, the appropriation item, the legislative authority, the responsible Minister's request, and the reduction amount. This legislative instrument extends its application based on the specific entities listed in the schedules, with any subsequent changes in entity names or portfolios reflected in the document. Disallowance of the determination is possible under the Legislative Instruments Act 2003, as it constitutes a Legislative Instrument.
Key Provisions
The instrument dated 24 June 2008, which is entitled "Determination to Reduce Appropriations Upon Request (No. 9 of 2007-2008)", is made under the legislative authority provided by subsection 10(2) of the Appropriation Act (No. 3) 2003-2004. This authority allows the Minister for Finance and Deregulation to reduce a departmental item in a prior year's Appropriation Act for a specified entity, by an amount specified in the Determination, upon receiving a written request from the Minister responsible for that entity. This provision is designed to extinguish excess departmental appropriation items, which may arise due to various reasons such as reclassification of amounts, efficiency savings, or the abolition of a government program before the appropriation is expensed.
Entities subject to this determination are required to have their appropriation items reduced by the amounts specified in Column 5 of the instrument's Schedules. The instrument lists the affected entities alphabetically by portfolio and details the reductions in individual provisions. Each provision specifies the entity, the appropriation item, the legislative authority, the responsible Minister's request, and the amount of reduction. The entities listed in Column 1 of the instrument were consulted in the preparation of the instrument in accordance with the Legislative Instruments Act 2003.
The obligations imposed by this instrument primarily concern the entities listed in the Schedules. These entities must ensure that their appropriation items are adjusted as specified, and the responsible Ministers must request these reductions in writing. Additionally, the instrument mandates that the reductions must not exceed the lesser of the amount requested by the responsible Minister or the balance of the appropriation item remaining in the Consolidated Revenue Fund, as stipulated in subsection 10(6) of the Appropriation Act (No. 3) 2003-2004.
Failure to comply with the provisions of this instrument may result in civil or criminal consequences. Since the Determination is a Legislative Instrument and is disallowable, any breach could lead to the instrument being disallowed by either House of Parliament. The instrument itself does not specify particular offences or penalties, but breaches could potentially result in legal action or other consequences as prescribed by relevant laws and regulations.