EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance
Public Governance, Performance and Accountability Act 2013
PGPA Act (Melbourne Airport New Runway Land Acquisition Special Account — Establishment) Determination 2015/10
Purpose of this determination
This determination is made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and it:
- establishes the Melbourne Airport New Runway Land Acquisition Special Account (the special account).
The special account will be used primarily to collect receipts from Australia Pacific Airports (Melbourne) Pty Ltd (APAM) that would be used by the Commonwealth to pay out land owners for the acquisition of their land and costs associated with the acquisitions.
APAM proposes to expand the current runway system at Melbourne (Tullamarine) Airport, initially by constructing a new third runway in an east-west direction, extending the existing east-west runway and eventually by constructing a fourth runway in an north-south direction to provide additional capacity to meet the projected future increase in annual passenger numbers and aircraft through its runway development. This development would be built partly over land already contained within the airport site and partly over land presently falling outside of the airport site.
APAM has negotiated with landowners and has purchased some of the land required. The remaining land owners have not agreed to a sale. As such APAM has sought the assistance of the Commonwealth to acquire the additional land required, by compulsory acquisition if necessary.
The operating context of special accounts
A special account may be established by a determination made by the Minister for Finance (under section 78 of the PGPA Act) or by an Act other than the PGPA Act (consistent with section 80 of the PGPA Act).
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 Consolidated Revenue Fund (CRF). Section 83 of the Constitution provides that such money may not be spent except under an appropriation made by law.
- A special account enables moneys raised or received to be set aside for the purposes of a special account.
- Payments for the purpose of a special account are supported by an appropriation contained in subsection 78(4) of the PGPA Act (for a determination established special account) and subsection 80(1) of the PGPA Act (for an Act established special account).
Special account determinations
Determinations establishing special accounts are made by the Minister for Finance under subsection 78(1) of the PGPA Act. A special account determination sets out the types of amounts that may be credited to the special account and the purposes for which amounts may be debited from the account.
Special account determinations may be varied or revoked by a subsequent determination being made in accordance with subsection 78(3) of the PGPA Act.
Subsection 79(2) of the PGPA Act provides that special account determinations are legislative instruments under the Legislative Instruments Act 2003. Special account determinations are subject to Part 6 (sunsetting) of the Legislative Instruments Act 2003. A special account determination will, therefore, be repealed on the earlier of 1 April or 1 October falling on or after the tenth anniversary of registration of the determination.
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, 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 Legislative Instruments 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, they are not subject to disallowance under section 42 of the Legislative Instruments Act 2003. As such, a Statement of Compatibility with Human Rights is not required.
Consultation
The Department of Infrastructure and Regional Development was consulted in the preparation of this determination. As this determination is for internal machinery of government purposes only, no consultation was necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).