EXPLANATORY STATEMENT
STATUTORY RULES NO. 189 OF 1984
ISSUED BY AUTHORITY OF THE MINISTER FOR FINANCE
The attached Statutory Rules amend Finance Regulation 93 which was made under sub-section 71(1) of the Audit Act 1901.
Prior to amendment of the regulation, the Government’s policy of giving preference to Australian-made goods was implemented within Departments on the basis of directions given by each Minister to his or her respective Department. This course was followed because Ministers of State, by virtue of their inherent power under the Constitution to incur expenditure, are not subject in that respect to the provisions of the Audit Act or the Finance Regulations that govern financial administration by public servants. Thus any officer acting pursuant to the Ministerial direction was not subject to the Audit Act or the Finance Regulations since he or she acted for or on behalf of the Minister.
Notwithstanding the constitutional propriety of Ministerial directions being issued, the Government believed that an amendment to the regulation should be effected.
The amendment will permit an officer, acting in his or her own name as a delegate of a Minister, to incur, authorise or approve expenditure in those purchasing situations where the Minister has directed that considerations other than due economy (ie lowest acceptable quotation or tender) should be considered.
Minister of State for Finance.