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Appropriation Bill (No. 3) 2009-2010

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2008-2009

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

 

 

 

 

 

 

 

Appropriation Bill (No. 3) 2009-2010

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

 

 

(Circulated by the authority of the Minister for Finance and Deregulation,

the Hon Lindsay Tanner MP)



Table of Acronyms and Defined Terms

 

 

AEs

Additional Estimates

AFM

Advance to the Finance Minister

AI Act

Acts Interpretation Act 1901

CAC Act

Commonwealth Authorities and Companies Act1997

CRF

Consolidated Revenue Fund

FMA Act

Financial Management and Accountability Act 1997

FMA regulations

Financial Management and Accountability Regulations 1997

GST

Goods and Services Tax

LI Act

Legislative Instruments Act 2003

PAES

Portfolio Additional Estimates Statements

PBS

Portfolio Budget Statements

PSES

Portfolio Supplementary Estimates Statements

 



 

Appropriation Bill (No. 3) 2009 - 2010

General Outline

1                     This explanatory memorandum accompanies Appropriation Bill (No. 3) 2009-2010 (the Bill).

2                     The main purpose of the Bill is to propose appropriations from the Consolidated Revenue Fund (CRF) for the ordinary annual services of the Government in addition to those provided in the 2009-2010 Budget.

3                     Appropriations for the ordinary annual services of the Government must be contained in a separate bill from other appropriations in accordance with sections 53 and 54 of the Australian Constitution . Other annual appropriations that are not for the ordinary annual services of the Government are proposed in Appropriation Bill (No. 4) 2009-2010 . Together, Appropriation Bill (No. 3)

2009-2010
and Appropriation Bill (No. 4) 2009-2010 are termed the Additional Estimates (AEs) appropriation Bills.

4                     This Explanatory Memorandum should be read in conjunction with the various Portfolio Statements, in particular:

·                 the Portfolio Additional Estimates Statements (PAES) which contain detail on the appropriations set out in Schedule 1 to the Bill and are published and tabled in the Parliament in relation to the Bill;

·                 the 2009-2010 Portfolio Budget Statements (PBS) that were published and tabled in the Parliament in relation to the Appropriation Bill (No. 1) 2009-2010 and Appropriation Bill (No. 2) 2009-2010 ; and

·                 the Portfolio Supplementary Estimates Statements (PSES) that were published and tabled in the Parliament in relation to the Appropriation (Water Entitlements and Home Insulation) Bill 2009-2010 and Appropriation (Water Entitlements) Bill 2009-2010.

Structure of appropriations in the Bill

5                     The Bill provides for the appropriation of specified amounts for expenditure by Australian Government agencies (primarily being agencies under the Financial Management and Accountability Act 1997 (FMA Act)) plus payments to bodies under the Commonwealth Authorities and Companies Act 1997 (CAC Act bodies).

6                     Part 1 of the Bill deals with definitions, the interpretative role of various Portfolio Statements and the concept of notional payments.

7                     Part 2 of the Bill proposes appropriations to make payments of the amounts in Schedule 1 for departmental items (clause 7), administered items (clause 8) and CAC Act body payment items (clause 9).

8                     Part 3 of the Bill specifies the ways in which the amounts in Schedule 1 may be adjusted.

9                     Part 4 of the Bill deals with the reduction of departmental and administered items in previous appropriation Acts.

10                 Part 5 deals with credits to Special Accounts and provides for amounts to be appropriated as necessary . In addition to the adjustment provisions in Part 3, clause 16 of the Bill recognises that the appropriations in the Bill may also be varied by the FMA Act.

Financial Impact

11                 The Bill will appropriate the amounts specified in Schedule 1.



Notes on clauses

Part 1—Preliminary

Clause 1—Short title

1                     This clause specifies that the short title of the Bill, once enacted, will be Appropriation Act (No. 3) 2009-2010 .

Clause 2—Commencement

2                     Clause 2 provides for the Bill to commence as an Act on the day of Royal Assent.

Clause 3— Definitions

3                     Clause 3 defines the key terms used in the Bill, such as ‘administered item’, ‘agency’, ‘CAC Act body payment item, ‘current year’, ‘departmental item’ and ‘Portfolio Additional Estimates Statements’.

Clause 4—Portfolio Statements

4                     Clause 4 declares that the Portfolio Statements (PBS, PSES and the PAES) are extrinsic material under paragraph 15AB(2)(g) of the Acts Interpretation Act 1901 (AI Act) that may be used to ascertain the meaning of certain provisions in accordance with subsection 15AB(1) of the AI Act. The purpose of the Portfolio Statements is to provide information on the proposed allocation of resources to Government outcomes by agencies within the portfolio. The Portfolio Statements provide information to enable Parliament to understand the purpose of appropriations proposed in the Bill. The Portfolio Statements are defined in the Bill, at clause 3, to mean the PBS, PSES and the PAES.

Clause 5—Notional payments, receipts etc

5                     Clause 5 ensures that payments between agencies result in a debit from the appropriation for the paying agency. For example, the payments of the amounts in Schedule 1 from one FMA Act agency to another do not require, in a constitutional sense, an appropriation because both agencies operate within the CRF. However, for reasons of financial discipline and transparency, the practice has arisen for these payments between agencies to be treated as though they required an appropriation, and to debit an appropriation when such notional payments are made.

6                     Clause 5 provides that notional transactions between agencies are to be treated as if they were real transactions and therefore require the use of a drawing right and the debiting of an appropriation made by Parliament. Where an FMA Act agency makes a payment, whether to another FMA Act agency or another part of the same agency (such as a different ‘business unit’ within the agency), it is to be treated as a ‘real’ payment. This means that the appropriation made by Parliament is extinguished by the amount of the notional payment, even though no payment is actually made from the CRF. Similarly a notional receipt in such a situation is to be treated by the receiving agency (where relevant) as if it were a real receipt. This does not mean every internal transfer of public money involves a notional payment and receipt. As explained in the Financial Management and Accountability Regulations 1997 (FMA regulations) regulation 19, some transfers of public money from one official account to another do not involve a notional payment or debiting an appropriation.

Part 2—Appropriation items

Clause 6—Summary of appropriations

7                     Clause 6 sets out the total of the appropriations in Schedule 1 of the Bill. Importantly, the amounts in Schedule 1 may be adjusted under the provisions in Part 3 of the Bill. In particular :

·                 Departmental items may be reduced in accordance with clause 10;

·                 Administered items may be reduced in accordance with clause 11;

·                 CAC Act body payment items may be reduced in accordance with clause 12; and

·                 items may be increased by a determination under clause 13 (the Advance to the Finance Minister).

8                     The amounts in Schedule 1 of the Bill may be adjusted further in accordance with sections 30 to 32 of the FMA Act. Specifically:

·                 Section 30 allows an agency to re-credit (to an appropriation that had been relied upon for an initial payment by the agency) an amount equivalent to the repayment. The re-crediting, or reinstatement, authorised by section 30 can result in the total amount paid from the CRF in gross terms exceeding the amount specified in an item. Section 30 also applies to notional transactions between and within agencies.

·                 Appropriations may be adjusted by amounts recovered by an agency from the Australian Taxation Office for Goods and Services Tax (GST), in accordance with section 30A of the FMA Act . The amounts specified in Schedule 1 exclude recoverable GST. The appropriations shown represent the net amount that Parliament is asked to allocate to particular purposes. Section 30A has the effect of increasing, or supplementing, an appropriation by the amount of the GST qualifying amount arising from payments in respect of the appropriation. As a result, there is sufficient appropriation for payments under an appropriation item provided that the amount of those payments, less the amount of recoverable GST, can be met from the initial amount shown against the item in Schedule 1. Section 30A also applies to notional transactions between and within agencies.

·                 Departmental items may be increased to take into account certain other amounts received by an agency, if those receipts are prescribed by the FMA regulations, in accordance with section 31 of the FMA Act.

·                 Items may be adjusted to take into account the transfer of functions between agencies, in accordance with section 32 of the FMA Act. It is possible that adjustments under section 32 may result in new items and/or outcomes being created in an Appropriation Act. It might also result in amounts being transferred between Appropriation Acts.

Clause 7—Departmental items

9                     Clause 7 provides that the amount specified in a departmental item for an agency may be applied for the departmental expenditure of the agency. Clause 3 defines:

·                 ‘departmental item’ to be the total amount set out in Schedule 1 in relation to an agency under the heading ‘Departmental Outputs’; and

·                 ‘expenditure’ to be payments for expenses, acquiring assets, making loans or paying liabilities.

10                 While the departmental items in Schedule 1 may be divided between outcomes, the different amounts against outcomes are notional. The total appropriation for departmental expenses represents the departmental item.

11                 Departmental items involve costs over which an agency has control. Departmental appropriations can be used to make any payment related to the functions of the agency. Expenditure typically covered by departmental items includes employee expenses, suppliers and other operational expenses (e.g. replacement and maintenance of existing departmental assets). There can also be occasions when an agency, such as a portfolio department, needs to cover matters in relation to other areas of the Government. Examples can include whole-of-Government activities or a portfolio department assisting with the formation and initial costs of a new portfolio body (for which the department might later be reimbursed).

12                 Departmental items are not expressed in terms of a particular financial year and do not automatically lapse. Because the cash to meet expenses such as employee entitlements can be required at times other than when the expenses are incurred, the departmental appropriations remain available until required. Departmental items are available until they are spent or reduced in accordance with clause 10.

13                 The Finance Minister manages the payment from departmental items by agencies through the issuing of drawing rights in accordance with sections 26 and 27 of the FMA Act. Drawing rights control who may spend money from appropriations, and allow for conditions and limits to be set by the Finance Minister (or the Finance Minister’s delegate) in relation to those activities.

14                 Amounts appropriated for departmental items can be subject to a reduction process in accordance with clause 10 of the Bill. Under clause 10, the Minister responsible for an agency, or the Chief Executive of an agency for which the Finance Minister is responsible, may make a written request asking the Finance Minister to make a determination to reduce the agency’s departmental appropriation.

Clause 8—Administered items

15                 Subclause 8(1) provides for the appropriation of administered expense amounts to be applied by an agency for the purpose of contributing to the outcome for an agency. An administered item is defined in clause 3 to be the amounts set out in Schedule 1 opposite an outcome for an agency under the heading ‘Administered Expenses’. Administered expenses are appropriated separately for outcomes (i.e. unlike departmental items, the split across outcomes is not notional), making it clear what the funding is intended to achieve. Schedule 1 specifies how much can be expended on each outcome.

16                 The appropriations for administered items in Schedule 1 represent the amounts required to meet the total estimated additional expenses for the administered outcomes for 2009-2010.

17                 The purposes for which each administered item can be spent are set out in subclause 8(2). Subclause 8(2) provides that where the Portfolio Statements indicate a particular activity is in respect of a particular outcome, then expenditure on that activity is taken to be expenditure for the purpose of contributing to achieving that outcome. The outcomes are not, however, necessarily tied to the existence of a particular agency (e.g. abolishing a department will not affect the valid operation of an appropriation for an administered item for an outcome of that department, because the purpose of the appropriation does not depend on the existence of the department).

18                 Administered expenses are those administered by an agency on behalf of the Government (e.g. certain grants, benefits and transfer payments). These payments are usually made pursuant to eligibility rules and conditions established by the Government or Parliament. Specifically:

·                 administered items are tied to outcomes, departmental items are not;

·                 administered items must be spent in accordance with rules and conditions established by Government or Parliament; and

·                 there is a process in clause 11 for dealing with administered items that are not fully expensed or spent during the financial year.

19                 The Finance Minister manages payments from administered items by agencies through the issuing of drawing rights in accordance with sections 26 and 27 of the FMA Act. Drawing rights control who may spend money from appropriations, and allow for conditions and limits to be set by the Finance Minister (or the Finance Minister’s delegate) in relation to those activities.

Clause 9—CAC Act body payment items

20                 Clause 9 provides for direct appropriations of money for CAC Act bodies to be paid from the CRF by the relevant department. Clause 9 provides that payments for CAC Act bodies must be used for the purposes of those bodies.

21                 A CAC Act body is defined in clause 3 to be a Commonwealth authority or a Commonwealth company within the meaning of the CAC Act. Many CAC Act bodies receive funding directly from appropriations. However, these bodies are legally separate from the Commonwealth and as a result, do not debit appropriations or make payments from the CRF.

22                 CAC Act body payments will be initiated by requests to the relevant portfolio agencies from the CAC Act bodies. The Finance Minister manages appropriations for CAC Act bodies through the issuing of drawing rights in accordance with sections 26 and 27 of the FMA Act. Drawing rights control who may spend money from appropriations, and allow for conditions and limits to be set by the Finance Minister (or the Finance Minister’s delegate) in relation to those payments. CAC Act bodies will hold the amounts paid to them on their own account.

23                 Subclause 9(2) provides that if a CAC Act body is subject to another Act that requires amounts appropriated by Parliament for the purposes of that body to be paid to the body, then the full amount of the CAC Act body payment must be paid to the body. The purpose of subclause 9(2) is to clarify that subclause 9(1) is not intended to qualify any obligations in other legislation regulating a CAC Act body, where that other legislation requires the Commonwealth to pay the full amount appropriated for the purposes of the body.

24                 The full amount of the CAC Act body payments specified in Schedule 1 may be reduced in accordance with clause 12. Subclause 12(5) provides that subclause 9(2) does not prevent the CAC Act body payments in Schedule 1 being reduced.

Part 3—Adjusting appropriation items

25                 Part 3 of the Bill provides for reductions or increases to the amounts specified in Schedule 1. The reduction provisions are contained in clauses 10 through 12 inclusive. The provision that can increase the amounts specified in Schedule 1 is contained in clause 13.

Clause 10—Reducing departmental items

26                 Departmental items remain available until the appropriation is spent or reduced in accordance with clause 10. This clause enables the Chief Executive of an agency to comply with his or her obligations under section 44 of the FMA Act to promote the efficient, effective and ethical use of any surplus appropriations. Agencies should only spend all of a departmental item if there are government decisions to support that expenditure. Examples of where clause 10 may be appropriate to reduce a departmental item include:

·                 an excessive amount of appropriation was made in error;

·                 an amount is reclassified and appropriated again under another kind of appropriation (e.g. where an amount appropriated as departmental is to be reclassified as administered and a new administered appropriation is provided). The existing departmental appropriation remains legally available even though there is no Government authority to spend the funds;

·                 efficiency savings result in a program costing less than expected; or

·                 a program is abolished under Government policy before the appropriation is expended.

27                 Paragraph 10(1)(a) enables the Minister responsible for a particular agency to ask the Finance Minister to reduce a departmental item for that agency. Paragraph 10(1)(b) enables the Chief Executive of an agency for which the Finance Minister is responsible to ask the Finance Minister to reduce a departmental item for that agency. Subclause 10(5) assists readers by noting that a request under subclause 10(1) is not a legislative instrument within the meaning of section 5 of the Legislative Instruments Act 2003 (LI Act), on the basis that it is requesting a determination to be made and it is the determination that has substantive effect.

28                 Subclause 10(2) enables the Finance Minister to make a written determination to reduce a departmental item. The Finance Minister is not obliged to act on a request to reduce excess departmental output appropriations. However, if the Finance Minister does:

·                 the determination must be for the amount specified in the request: subclause 10(2);

·                 the determination may not reduce the departmental item below nil: subclause 10(3); and

·                 the departmental item in Schedule 1 will be taken to be reduced in accordance with the determination of the Finance Minister: subclause 10(4).

29                 Subclause 10(6) provides that a determination made under subclause 10(2) is a legislative instrument.

30                 Despite subsection 44(2) of the LI Act , which provides that instruments made under annual Appropriation Acts are not subject to disallowance, subclause 10(6) provides that a determination reducing a departmental item is subject to disallowance in accordance with section 42 of the LI Act. Parliament retains the power to disallow a determination to reduce a departmental item because any such determination will reduce the amount of an appropriation authorised by Parliament. Subclause 10(6) also confirms subsection 54(2) of the LI Act , which provides that instruments made under annual Appropriation Acts are not subject to sunsetting.

Clause 11—Reducing administered items

31                 Clause 11 provides for amounts of administered items not required after the end of the current year to be extinguished. If the Government then decides that amounts should be spent in a later financial year, the Government must request Parliament to appropriate these amounts in future appropriation bills.

32                 Clause 11 limits the amount that may be applied for an administered item to the amount reported for that item in an agency’s annual report. Subclause 11(1) provides that if the amount published in the annual report is less than the amount of the item, then the administered item is taken to be reduced to the amount specified in the annual report. The amount of the item specified in Schedule 1 of the Bill may be increased or reduced by the other clauses of Part 3 of the Bill or in accordance with sections 30 to 32 of the FMA Act. The amount in the annual report must therefore be compared with the amount for the item in Schedule 1 together with any other adjustments that have been made to that amount.

33                 Subclause 11(2) retains a power for the Finance Minister to determine that an amount published in the financial statements of an agency is taken to be the amount specified in his or her determination. The power in paragraph 11(2)(b) is to ensure that the amount published for the administered item can be corrected if, for example, the amount is erroneous or requires updating after the annual report is published.

34                 Subclause 11(3) provides that a determination made under subclause 11(2) is a legislative instrument.

35                 Despite subsection 44(2) of the LI Act , which provides that instruments made under annual Appropriation Acts are not subject to disallowance, subclause 11(3) provides that a determination regarding an administered item is subject to disallowance in accordance with section 42 of the LI Act. Parliament retains the power to disallow a determination to reduce an administered item because any such determination will reduce the amount of an appropriation authorised by Parliament. Subclause 11(3) also confirms subsection 54(2) of the LI Act , which provides that instruments made under annual Appropriation Acts are not subject to sunsetting.

Clause 12—Reducing CAC Act body payment items

36                 Clause 12 provides a similar process for reducing CAC Act body payment items to the process for reducing departmental items. Subclause 12(1) enables a Minister responsible for a CAC Act body, or in the case of a CAC Act body for which the Finance Minister is responsible, the Secretary of the Finance Department, to ask the Finance Minister to reduce a CAC Act body payment item for that body. Subclause 12(6) assists readers by noting that a request under subclause 12(1) is not a legislative instrument within the meaning of section 5 of the LI Act, on the basis that it is requesting a determination to be made and it is the determination that has substantive effect.

37                 Subclause 12(2) enables the Finance Minister to make a written determination to reduce a CAC Act body payment item. The Finance Minister is not obliged to act on a request to reduce a CAC Act body payment item. However, if the Finance Minister does:

·                 the determination must be for the amount specified in the request: subclause 12(2);

·                 the determination may not reduce the CAC Act body payment item below nil: subclause 12(3); and

·                 the CAC Act body payment item in Schedule 1 will be taken to be reduced in accordance with the determination of the Finance Minister: subclause 12(4).

38                 Subclause 12(5) provides that the full amount that is required to be paid to a CAC Act body by subclause 9(2) of the Bill may be reduced in accordance with this clause 12.

39                 Subclause 12(7) provides that a determination made under subclause 12(2) is a legislative instrument.

40                 Despite subsection 44(2) of the LI Act , which provides that instruments made under annual Appropriation Acts are not subject to disallowance, subclause 12(7) provides that a determination reducing a CAC Act body payment item is subject to disallowance in accordance with section 42 of the LI Act. Parliament retains the power to disallow a determination to reduce a CAC Act body payment item because any such determination will reduce the amount of an appropriation authorised by Parliament. Subclause 12(7) also confirms subsection 54(2) of the LI Act , which provides that instruments made under annual Appropriation Acts are not subject to sunsetting.

Clause 13—Advance to the Finance Minister

41                 Section 13 of Appropriation Act (No. 1) 2009-2010 (Act No. 1) enables the Finance Minister to provide additional appropriations for items when satisfied there is an urgent need for expenditure, and the existing appropriation is inadequate. This additional appropriation is referred to as the Advance to the Finance Minister (AFM). Subsection 13(3) of Act No. 1 provides that the total amount that can be determined under the AFM provision is $295 million.

42                 Clause 13 of the Bill provides that irrespective of the amounts issued from the AFM before the commencement of the Bill, the amount available under section 13 of Act No. 1 will be restored to the original amount of $295 million. The provision has been added to the Bill to ensure that there will be sufficient scope to provide amounts from the AFM for the remainder of the financial year.

43                 Subclause 13(1) specifies that if the Finance Minister has determined under subsection 13(2) of Act No. 1 to increase an amount in Schedule 1 of Act No. 1 from the AFM, then that amount is to be disregarded when the Bill commences. From the date the Bill commences the total amount that can be determined under the AFM will be $295 million.

44                 Subclause 13(2) will prevent appropriations for the same expenditure from both the AFM and the Bill. Subclause 13(2) ensures that if Schedule 1 of the Bill provides an amount for a particular expenditure and, prior to the commencement of the Bill, the Finance Minister determines an amount from the AFM under section 13 of Act No. 1 for the same expenditure (the advanced amount), then the appropriation in the Bill will be reduced by the amount of the advanced amount. For example if the Bill provides $20 million for a grants program and an advanced amount of $5 million is determined by the Finance Minister under Act No. 1 for a particular grant payment under that program, then the amount appropriated by the Bill, once enacted, will be reduced by $5 million (i.e. appropriating only $15 million for the grants program).

45                 The Finance Minister may continue to make determinations under subsection 13(2) of Act No. 1 to add an amount from the AFM to an item of an agency if the criteria in subsection 13(1) of Act No. 1 are satisfied.

Part 4—Reducing departmental and administered items in previous Acts

46                 Clause 14 provides a capacity for the Finance Minister to determine, by writing, that a departmental item or administered item for an agency in a previous appropriation Act is reduced by the amount specified in the written determination.

47                 The intent of clause 14 is to allow the Finance Minister to reduce amounts of departmental items and administered items from previous Acts where amounts in those items have been identified by the Finance Minister as having been appropriated as depreciation and make good amounts for agencies in those Acts. Since the introduction of accrual appropriations in 1999-2000 amounts of funding for depreciation and make good have accumulated which have not yet been applied by agencies. It is therefore necessary for the efficient, effective and ethical management of appropriations to subject these accumulated amounts to a reduction process that will extinguish them at law.

48                 This reduction provision is distinct from other reduction clauses in the Bill, (at clause 10, clause 11 and clause 12) and operates independently from those clauses. In clause 14 the Finance Minister’s capacity to effect a reduction is not conditioned on first receiving a written request for the reduction from, for example, the Minister who is responsible for the agency as per subclause 10(1)(a). In addition, this clause is specifically directed at effecting reductions in departmental and administered items in previous appropriation Acts where amounts in those items have been identified by the Finance Minister as having been provided as depreciation and make good amounts for agencies but those amounts have not yet been applied by agencies. Depreciation and make good amounts have been provided for the purposes of:

·                 meeting depreciation costs;

·                 meeting amortisation costs; and

·                 meeting the costs of returning an asset to a previous state or condition (subclause 14(6)).

49                 Subclause 14(1) enables the Finance Minister to make a written determination to reduce a departmental item or an administered item for an agency in a previous Act. Once made, the appropriation item for the agency in a previous Act will be reduced by the amount in the written determination: subclause 14(3).

50                 However, under subclause 14(2) a written determination will have no effect:

·                 where the item affected is reduced below nil after subtracting amounts that have been applied under that Act in respect of the item: subclause 14(2)(a); or

·                 where the amount specified in the written determination, when added to any other amounts specified in relation to the agency under subclause 14(1), exceeds the depreciation and make good amount for the agency: subclause 14(2)(b). This subclause is intended to confine the amount of the reduction only to amounts identified as being for depreciation and make good amounts that have not yet been applied.

51                 Subclause 14(4) provides that a determination made under subclause 14(1) is a legislative instrument. The subclause also provides that despite subsection 44(2) of the LI Act, which provides that instruments made under the annual Appropriation Acts are not subject to disallowance, the determination is subject to disallowance in accordance with section 42 of the LI Act. Parliament retains the power to disallow a determination to reduce a departmental or administered item because any such determination will reduce the amount of an appropriation authorised by Parliament. Subclause 14(4) also confirms that subsection 54(2) of the LI Act, which provides that instruments made under the annual Appropriation Acts, are not subject to sunsetting.

52                 Subclause 14(5) provides that a determination made under subclause 14(1) once made, must not be rescinded, revoked, amended or varied. Subclause 14(5) applies despite subsection 33(3) of the AI Act. This subclause intends to exclude the operation of section 33(3) of the AI Act from determinations made under subclause 14(1).

53                 Subclause 14(6) provides definitions of terms in the context of the operation of clause 14. Definitions include those for ‘depreciation and make good amount’ and ‘previous Act’.

Part 5—Miscellaneous

Clause 15—Crediting amounts to Special Accounts

54                 Clause 15 provides that if the purpose of an item in Schedule 1 is also the purpose of a Special Account (regardless of whether the item expressly refers to the Special Account), then amounts may be debited against the appropriation for that item and credited to the Special Account. Special Accounts may be established under the FMA Act by a determination of the Finance Minister (section 20) or another Act (section 21). The determination or Act that establishes the Special Account will specify the purposes of the Special Account.

Clause 16—Appropriation of the Consolidated Revenue Fund

55                 Clause 16 provides that the CRF is appropriated as necessary for the purposes of the Bill. Significantly this clause notes that the amounts appropriated by the Bill may be affected by the FMA Act, in particular sections 30 to 32 of the FMA Act (see clause 6).

Schedule 1—Services for which money is appropriated

56                 Schedule 1 specifies the appropriations proposed for the ordinary annual services of the Government. Schedule 1 contains a summary table which lists the total amounts for each portfolio. A separate summary table is included with further detail for each portfolio, with other tables detailing the appropriations for each agency.

57                 Schedule 1 includes for information purposes a figure for the previous financial year printed in plain text under each appropriation amount, labelled the ‘Actual Available Appropriation’. That figure provides a comparison with the proposed appropriations. The Actual Available Appropriation does not affect the amounts available at law.

58                 More details about the appropriations in Schedule 1 are contained in the Portfolio Statements and the second reading speech.