Senator IAN CAMPBELL (5:17 PM) —I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard .

Leave granted.

The speeches read as follows—

APPROPRIATION (PARLIAMENTARY DEPARTMENTS) BILL 1999-2000

The purpose of this bill is to appropriate the Consolidated Revenue Fund for the expenses of the Parliamentary Departments for the year ending 30 June 2000.

The total amount sought is $161.5 million. Details of the proposed appropriations are set out in the Schedule to the bill.

I commend the bill to the Senate.

APPROPRIATION BILL (No. 1) 1999-2000

It is with great pleasure that I introduce Appropriation Bill (No. 1) 1999-2000, which, together with Appropriation Bill (No.2), is one of the principal pieces of legislation underpinning the first budget of the second term of coalition government.

Appropriation Bill (No. 1) provides authority for meeting expenses on the ordinary annual services of government. The program of the government, to which the provisions in this bill relate, was outlined in the Treasurer's budget Speech, on 11 May.

This bill seeks appropriations of the Consolidated Revenue Fund in 1999-2000 totalling $36,219 million.

Details of the proposed expenditure are set out in the Schedule to the bill, the main features of which were outlined in the Treasurer's budget Speech.

This is an historic occasion for the Parliament.

It is the first time on which the Commonwealth's budget has been presented on the basis of accrual accounting principles.

The move to accruals, which is consistent with the recommendation of the National Committee of Audit, complements and extends the government's accountability under the Charter of budget Honesty.

As noted by my colleague, the Treasurer, the move to accruals means that, for the first time, the budget will contain financial statements for the Commonwealth general government sector for 1998-99, the budget and forward estimates years, including:

. an Operating Statement;

. Statement of Assets and Liabilities;

. Cash Flow Statement; and

. Capital Expenditure Statement.

This means that Parliament, and the community at large, will have comprehensive information on the financial performance of the government consistent with the information disclosed in company annual reports.

This information will be complemented by the inclusion in the Portfolio Budget Statements of full financial statements for all Commonwealth agencies.

In providing estimates in this way, the Commonwealth is moving ahead of the general practice in the private sector where budgets are rarely, if ever, released to shareholders and certainly not for a five year time period.

Under the accrual framework, the focus in the government's Appropriation bills is on:

. achieving agency outcomes, rather than the current input focus; and

. funding for the full price of agency outputs or administered expenses estimated to be in curred, rather than merely estimates of cash payments to be made.

Taken together, these changes disclose to the Parliament the full costs of the government's activities and allow a greater focus on performance of agencies.

I commend the bill to the Senate.

APPROPRIATION BILL (No. 2) 1999-2000

Appropriation Bill (No.2) provides for the revenues for agencies to meet:

. expenses in relation to grants to the States under section 96 of the Constitution and for payments to the Northern Territory and the Australian Capital Territory;

. administered expenses on new outcomes; and

. equity injections and loans to agencies as well as administered capital funding.

As part of the transition to accruals, any carryovers from 1998-99 associated with the former running costs system governing Commonwealth departments and agencies are being appropriated in bill 2 as an equity injection.

This bill seeks appropriations of the Consolidated Revenue Fund in 1999-2000 totalling $5950 million.

Details of the proposed appropriations are set out in Schedule 2 to the bill, the main features of which were outlined in the treasurer's budget.

I commend the bill to the Senate.

Debate (on motion by Senator O'Brien) adjourned.