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. 9 of 2010-2011) |
Date instrument was made | 18 March 2011 |
The legislative authority under which the instrument is made | Subsection 10(2) of Appropriation Act (No. 1) 2009-2010 enables the Minister for Finance and Deregulation to make a written 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. Determinations made under subsection 10(2) are legislative instruments and are disallowable. |
Purpose and effect of the instrument | The purpose of the instrument is to reduce the appropriation item that the Parliamentary Secretary to the Prime Minister has advised the Minister for Finance and Deregulation is surplus to the requirements of the Department of the Prime Minister and Cabinet (PM&C). Schedule 1 of the Instrument determines that the departmental item for PM&C in Appropriation Act (No. 1) 2009-2010 be reduced by $329,989.00. |
Background | The Parliamentary Secretary to the Prime Minister wrote to the Minister for Finance and Deregulation on 18 February 2011 requesting a determination to reduce PM&C’s departmental item in Appropriation Act (No. 1) 2009-2010. The reduction in the departmental appropriation represents an unspent amount relating to funds provided for the Pacific Islands Forum 2009 in which are no longer required. |
Notes on the Instrument | The Schedule to the Instrument contains 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 Department of the Prime Minister and Cabinet was consulted in the preparation of this Instrument. |
Overview
The Determination to Reduce Appropriations Upon Request (No. 9 of 2010-2011), made under subsection 10(2) of the Appropriation Act (No. 1) 2009-2010, was enacted to address an appropriation surplus within the Department of the Prime Minister and Cabinet (PM&C). This legislative instrument, made on 18 March 2011, responds to a request from the Parliamentary Secretary to the Prime Minister, who identified a surplus of $329,989.00 that was no longer required for the Pacific Islands Forum 2009. The determination reduces the PM&C’s departmental appropriation accordingly, ensuring fiscal efficiency and proper allocation of public funds. The instrument was prepared with consultation from the Department of the Prime Minister and Cabinet, as required by the Legislative Instruments Act 2003, and is subject to disallowance.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No. 9 of 2010-2011) applies to the Department of the Prime Minister and Cabinet (PM&C) as it seeks to adjust the appropriation item for this department within the Appropriation Act (No. 1) 2009-2010. This legislative instrument, made under the authority of the Minister for Finance and Deregulation pursuant to subsection 10(2) of the Appropriation Act (No. 1) 2009-2010, is applicable at the Commonwealth level. The purpose of this determination is to reduce a surplus appropriation by $329,989.00, which was initially allocated for the Pacific Islands Forum 2009 but is no longer needed. The instrument was made following a written request from the Parliamentary Secretary to the Prime Minister to the Minister for Finance and Deregulation on 18 February 2011, and it was subsequently reviewed and approved in consultation with the affected department as required by the Legislative Instruments Act 2003. This determination does not extend or restrict application through subordinate instruments and is subject to disallowance as per the legislative framework.
Key Provisions
The Determination to Reduce Appropriations Upon Request (No. 9 of 2010-2011) is a legislative instrument that, under subsection 10(2) of the Appropriation Act (No. 1) 2009-2010, allows the Minister for Finance and Deregulation to reduce a departmental appropriation item for an agency. This particular determination seeks to reduce the appropriation item for the Department of the Prime Minister and Cabinet (PM&C) by $329,989.00, following a request by the Parliamentary Secretary to the Prime Minister. This request was based on the surplus funds from the 2009 Pacific Islands Forum that are no longer needed. The determination is made in accordance with the Legislative Instruments Act 2003, and the PM&C was consulted in the preparation of this instrument.
The primary obligation under this determination is for the Minister for Finance and Deregulation to respond to a written request from the relevant Minister responsible for an agency seeking a reduction in the agency's appropriation item. Once the request is received, the Minister must issue a written determination specifying the reduction in the appropriation. This process is intended to provide flexibility in budget management, allowing departments to adjust their spending based on actual needs. The determination also emphasises the importance of consultation and coordination between different government agencies to ensure that budget adjustments are made efficiently and effectively.
In terms of compliance and enforcement, while the instrument itself does not outline specific offences or penalties for breach, it is a legislative instrument and therefore subject to disallowance under the Legislative Instruments Act 2003. This means that if the instrument is not properly made or fails to comply with the relevant legislation, it can be disallowed by Parliament. The process for disallowance involves scrutiny by Parliament, which can reject the instrument if it is found to be in breach of any legislative requirements. There are no direct criminal or civil penalties specified in the instrument, but the implications of disallowance could include political and administrative consequences for the responsible Ministers and departments.
The determination aims to provide a clear and formal process for adjusting departmental appropriations to better align with current needs and priorities. It underscores the importance of budgetary flexibility and effective resource management within the government. By allowing for the reduction of surplus funds, the instrument supports efficient financial practices and ensures that government resources are used in the most effective manner possible.