International Development Association Act 1987
No. 179 of 1987
An Act to authorise a further contribution by Australia to the International Development Association
[Assented to 26 December 1987]
BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
Short title
1. This Act may be cited as the International Development Association Act 1987.
Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Interpretation
3. In this Act, expressions have the same meanings as they have in the International Development Association Act 1960.
Contribution to Association
4. The Minister may, on behalf of Australia, notify the Association of the intention of Australia to contribute to the Association amounts not exceeding in the aggregate $335,000,000.
Issue of promissory notes
5. (1) For the purposes of the payment of the contribution notified by the Minister under section 4, the Treasurer may, on behalf of Australia, execute and issue to the Association promissory notes.
(2) A promissory note issued under subsection (1):
(a) shall be payable to the Association;
(b) shall be non-negotiable and non-interest-bearing; and
(c) shall be payable at its par value on demand.
Appropriation
6. The money necessary for the purpose of making any payment that is to be made by Australia in pursuance of a notification under section 4, including payment under a promissory note issued under section 5, shall be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.
[Minister’s second reading speech made in—
House of Representatives on 19 November 1987
Senate on 26 November 1987]
Overview
The International Development Association Act 1987 was enacted by the Commonwealth Parliament to facilitate Australia's contribution to the International Development Association (IDA), an affiliate of the World Bank Group focused on reducing poverty in developing countries. The Act allows the Minister, on behalf of Australia, to notify the IDA of the nation's intention to contribute up to a specified amount. This contribution is to be made through the issuance of promissory notes by the Treasurer, which are non-negotiable, non-interest-bearing, and payable on demand at par value. The necessary funds for these payments are to be appropriated from the Consolidated Revenue Fund, ensuring that the financial obligations under the Act are met through the Commonwealth's consolidated revenue. The policy objective underlying this legislation is to enable Australia to support global poverty reduction efforts through financial contributions to the IDA.
Scope and Application
The International Development Association Act 1987 provides the legal framework for Australia's financial contributions to the International Development Association, an entity within the World Bank Group. The Act applies to the Minister and the Treasurer who are authorised to notify the International Development Association of Australia’s intention to contribute funds up to a specified limit and to issue promissory notes for these payments, respectively. This Act has a national jurisdictional reach within Australia, ensuring that the contributions are aligned with the broader international development objectives. The Act does not explicitly exclude any particular persons, entities, or industries from its application, meaning it broadly applies to the relevant federal government officials in their official capacities. Furthermore, the Act references the International Development Association Act 1960 for interpretation, implying that it extends and builds upon previous legislative foundations regarding Australia's involvement in international development finance. The Act also provides for the appropriation of necessary funds from the Consolidated Revenue Fund, ensuring the financial backing required for these contributions.
Key Provisions
The International Development Association Act 1987 (Cth) primarily authorises Australia to contribute to the International Development Association (IDA) up to a specified aggregate amount. Under section 4, the Minister is empowered to notify the IDA of Australia's intention to contribute up to $335,000,000. This notification sets the stage for the financial commitment that Australia pledges towards the IDA's objectives. In line with this notification, section 5 allows the Treasurer to issue promissory notes on behalf of Australia to facilitate the payment of this contribution. These promissory notes, which are non-negotiable and non-interest-bearing, are payable to the IDA at par value on demand.
The Act imposes specific obligations on the Minister and the Treasurer. The Minister, under section 4, is responsible for notifying the IDA of Australia's financial commitment. This notification is a formal declaration of Australia's intent to contribute to the IDA. Concurrently, the Treasurer, under section 5, must execute and issue promissory notes to the IDA to ensure that the financial commitment is met. These promissory notes serve as the instrument through which the contribution is formalised and executed. Furthermore, section 6 mandates that the necessary funds for these payments are to be appropriated from the Consolidated Revenue Fund, ensuring that the financial resources are available and properly allocated for this purpose.
Breach of the obligations set forth in the Act may lead to various consequences. While the Act does not explicitly detail criminal or civil penalties for non-compliance, failure to appropriate the necessary funds or to issue the promissory notes as required could potentially lead to legal scrutiny and financial implications. The seriousness of such breaches would likely depend on the context and the impact on the IDA's operations and Australia's international commitments. It is also important to note that any failure to meet the financial obligations under the Act could affect Australia's standing and credibility in international development efforts.