INTERNATIONAL DEVELOPMENT
ASSOCIATION (FURTHER PAYMENT) ACT
1974
No. 142 of 1974
An Act to approve the making by Australia of a further Payment to the International Development Association.
BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows:—
Short title.
1. This Act may be cited as the International Development Association (Further Payment) Act 1974.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Interpretation.
3. In this Act, “Agreement” and “Association” have the same respective meanings as they have in the International Development Association Act 1960.
Approval of making of further payment.
4. The approval of the Parliament is hereby given to the making by Australia to the Association of a further payment of an amount not exceeding $60,810,811 in Australian currency, of which payment an amount not exceeding $399,003 is by way of an additional subscription to the Association under Section 1 of Article III of the Agreement.
Appropriation.
5. A payment under section 4, and any payment necessary to redeem a security issued under sub-section 6(1), shall be made out of the Consolidated Revenue Fund, which is appropriated accordingly.
Issue of securities.
6. (1) To the extent to which the Association is prepared to accept from Australia, in place of a payment under this Act, notes or similar obligations issued by Australia, the Treasurer may, on behalf of Australia, execute notes or similar obligations payable to the Association accordingly.
(2) Section 6 of the International Development Association Act 1960 does not apply to a payment under this Act.
Overview
The International Development Association (Further Payment) Act 1974 was enacted to provide parliamentary approval for Australia to make a further payment to the International Development Association (IDA). The Act was introduced to address the need for continued financial support to the IDA, which is a part of the World Bank Group that provides low-interest loans and grants to the world's poorest countries for development projects. The Act was passed by the Queen, the Senate, and the House of Representatives of Australia, reflecting the legislative process and approval necessary for such financial commitments. The policy objective was to ensure that Australia could contribute to the IDA's efforts in alleviating poverty and fostering economic development in developing nations. The Act authorises the making of a payment not exceeding $60,810,811, which includes an additional subscription to the IDA, and appropriates funds from the Consolidated Revenue Fund for this purpose.
Scope and Application
The International Development Association (Further Payment) Act 1974 applies specifically to the making of a further payment by Australia to the International Development Association (IDA), which is an entity under the broader International Development Association Act 1960. The Act provides for the approval of a specific additional financial contribution to the IDA, facilitating Australia's ongoing commitment to international development efforts. The Act's jurisdiction is confined to the Commonwealth of Australia and it extends to authorising the Treasurer to execute notes or similar obligations in lieu of direct payment, subject to the IDA's acceptance. The Act does not specify exclusions or exemptions but is limited to an authorised payment amount of up to $60,810,811, with a small portion allocated as an additional subscription. The Act is self-contained in its provisions but may be further regulated or detailed through subordinate instruments issued under its authority.
Key Provisions
The International Development Association (Further Payment) Act 1974 primarily concerns the approval and implementation of a further payment by Australia to the International Development Association (IDA) (section 4). It specifies the maximum amount of this payment as $60,810,811, with a portion of this amount allocated as an additional subscription to the IDA under Article III of the Agreement (section 4). Additionally, the Act outlines the appropriation of funds for this payment from the Consolidated Revenue Fund, ensuring that the necessary financial resources are available for this purpose (section 5). It also allows for the issuance of notes or similar obligations by Australia to the IDA in lieu of direct payment, provided the IDA accepts such instruments (section 6(1)). However, section 6(2) clarifies that the provisions of the International Development Association Act 1960 do not apply to payments made under this Act.
Under the International Development Association (Further Payment) Act 1974, the primary obligations fall on the Australian government to facilitate the approved payment to the IDA within the specified limits. The Treasurer is responsible for executing notes or similar obligations if the IDA accepts them as an alternative to direct payment (section 6(1)). Additionally, the Act mandates the appropriation of funds from the Consolidated Revenue Fund to cover the payment and any associated costs for redeeming securities issued in place of direct payment (section 5). These provisions ensure that the financial commitment to the IDA is honoured and properly accounted for within the Australian budgetary framework.
The Act does not explicitly outline specific offences or penalties for breaches of its provisions. However, any failure to appropriate funds or make the approved payment could potentially lead to legal consequences under other legislative frameworks that govern the appropriation of public funds or international financial commitments. The absence of specific penalties in this Act implies that general legal and financial regulations would apply in the event of non-compliance.