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).
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted by the Australian Parliament to provide a framework for the management of public finances, ensuring accountability and performance in the use of public resources. This Act aims to address the need for improved governance and performance in public sector financial management. The PGPA Act (Melbourne Airport New Runway Land Acquisition Special Account — Establishment) Determination 2015/10, issued by the Minister for Finance, establishes the Melbourne Airport New Runway Land Acquisition Special Account to facilitate the compulsory acquisition of land required for the expansion of Melbourne Airport. The special account will collect receipts from Australia Pacific Airports (Melbourne) Pty Ltd to compensate landowners and cover acquisition costs. This mechanism ensures that funds are specifically allocated for this purpose, in compliance with the appropriation requirements set out in the Constitution and the PGPA Act.
Scope and Application
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) establishes a framework for financial management within the Commonwealth public sector. The Melbourne Airport New Runway Land Acquisition Special Account, established under a determination made by the Minister for Finance under subsection 78(1) of the PGPA Act, is an appropriation mechanism that sets aside funds within the Consolidated Revenue Fund (CRF) for a specific purpose. This special account is primarily used to collect receipts from Australia Pacific Airports (Melbourne) Pty Ltd (APAM), which are then used by the Commonwealth to compensate landowners for the acquisition of land needed for the expansion of Melbourne Airport. This expansion includes the construction of a new third runway and eventually a fourth runway to accommodate future increases in passenger numbers and aircraft. The account is established to facilitate the compulsory acquisition of remaining land required for the airport's development, where negotiations with landowners have not been successful. Special account determinations, such as this one, are legislative instruments subject to sunsetting and disallowance provisions, and they require tabling in each House of Parliament. The determination is made in accordance with the PGPA Act and does not require a Statement of Compatibility with Human Rights, as it is not subject to disallowance under the Legislative Instruments Act 2003.
Key Provisions
This determination, established under the Public Governance, Performance and Accountability Act 2013 (PGPA Act) (section 78(1)), establishes the Melbourne Airport New Runway Land Acquisition Special Account (the special account). The special account will be used to collect receipts from Australia Pacific Airports (Melbourne) Pty Ltd (APAM) to pay land owners for the acquisition of their land and associated costs (section 78(2)). This is primarily in connection with the expansion of the current runway system at Melbourne (Tullamarine) Airport, which APAM proposes to undertake by constructing a new third runway and eventually a fourth runway to meet the projected future increase in annual passenger numbers and aircraft (section 78(3)).
The special account is an appropriation mechanism that sets aside amounts within the Consolidated Revenue Fund (CRF) for spending on specified purposes (section 81). The purposes of the special account are set out in the establishing determination or Act (section 80). 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 (section 81). Special account determinations are legislative instruments under the Legislative Instruments Act 2003 and are subject to Part 6 (sunsetting) of the Legislative Instruments Act 2003 (subsection 79(2)). 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 (subsection 79(2)). The Finance Minister must table a copy of such determinations in each House of the Parliament (subsection 79(3)) and special account determinations are subject to disallowance by either House of the Parliament (subsection 79(4)).
The determination imposes several obligations on the parties involved. Firstly, the special account must be used solely for the purpose of collecting receipts from APAM to pay land owners and associated costs for the acquisition of land required for the airport expansion (section 78(2)). Secondly, APAM must negotiate with landowners and purchase the required land. If landowners do not agree to a sale, the Commonwealth may assist in the acquisition of the land through compulsory acquisition (section 78(3)). Thirdly, the special account determination must be tabled in each House of the Parliament and is subject to disallowance by either House (subsection 79(3) and (4)). 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 (subsection 79(4)).
Breach of the obligations imposed by this determination may result in civil or criminal consequences, depending on the nature and severity of the breach. For example, if APAM fails to negotiate with landowners and purchase the required land, the Commonwealth may assist in the acquisition of the land through compulsory acquisition. Failure to comply with this requirement may result in legal action being taken against APAM. Additionally, if the special account is used for purposes other than those specified in the determination, this may result in criminal charges being brought against the individuals responsible for the misuse of the special account. The maximum penalties for breaches of the PGPA Act are set out in section 12 of the Act and may include fines, imprisonment, or both. However, the specific penalties for breach of this determination are not stated in the determination itself.