EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Establishment of NMF Blood and Blood Products Special Account 2017)
Purpose of this determination
This determination is made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to establish the NMF Blood and Blood Products Special Account 2017 (the special account).
The special account is being established to assist the National Blood Authority to continue to manage liability claims against the Australian Red Cross Society, in accordance with the National Managed Fund (NMF) framework. Amounts to the credit of the special account may be used for the following purposes:
- payments in respect of blood and blood products liabilities and claims against the Australian Red Cross Society (in relation to the activities undertaken by the operating division of the Australian Red Cross Society known as the Australian Red Cross Blood Service);
- payments to manage risks or reduce the incidence or size of these potential liabilities or claims against the Australian Red Cross Society;
- payments of incidental expenses such as those incurred in managing the special account, including payments to outsourced providers;
- payments to the contributors, in the proportions agreed by those parties (it is intended that these payments would be made upon the wind up of the special account); or
- to repay amounts where an Act or other law requires or permits the repayment of an amount received.
The NMF was established in 2000 by a memorandum of understanding in which the Commonwealth, State and Territory governments and the Australian Red Cross Society each pay an annual contribution. Previously, monies related to the NMF were managed through another special account administered by the Department of Health and Ageing.
The special account can receive amounts from the Department of Health and Ageing related to the Fund.
The operating context of special accounts
A special account may be established, varied or revoked under the PGPA Act: by a determination made by the Minister for Finance (under section 78) or by an Act (see section 80).
A special account is an appropriation mechanism that sets aside amounts within the Consolidated Revenue Fund (CRF) for spending on specified purposes. The purposes of a special account are set out in the establishing determination or Act.
In accordance with section 81 of the Constitution, all revenues or moneys raised or received by the Commonwealth Executive Government form one CRF. Section 83 of the Constitution provides that such money may not be drawn from the Treasury except under an appropriation made by law.
- A special account enables revenues or moneys raised or received to be set aside for the purposes of that special account.
- Payments made for the purposes of a special account are supported by an appropriation in the PGPA Act; subsection 78(4) for a special account established by a determination or subsection 80(1) for a special account established by an Act.
Special account determinations
Special account determinations are legislative instruments under the Legislation Act 2003. Special account determinations may be varied or revoked by a subsequent determination being made in accordance with subsection 78(3) of the PGPA Act.
In accordance with subsection 79(3) of the PGPA Act, the Finance Minister must table a copy of such determinations in each House of the Parliament. Subsection 79(4) of the PGPA Act provides that special account determinations are subject to disallowance by either House of the Parliament. The disallowance period starts on the day a special account determination is tabled in the House and ends on the fifth sitting day after the determination was tabled in that House.
If neither House passes a resolution to disallow a special account determination, under subsection 79(5) it comes into effect on the day immediately after the last day on which it could have been disallowed, or on a later day if specified in the determination.
Human Rights
A Statement of Compatibility with Human Rights is not required for this determination. Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires a Statement of Compatibility with Human Rights for all legislative instruments subject to disallowance under section 42 of the Legislation Act 2003. While determinations made or varied under subsections 78(1) or 78(3) of the PGPA Act are subject to disallowance under section 79 of the PGPA Act, subsection 79(2) provides that they are not subject to disallowance under section 42 of the Legislation Act 2003. As such, a Statement of Compatibility with Human Rights is not required.
Consultation
The National Blood Authority was consulted in the preparation of this determination.