7451

2013

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

 

Commonwealth Inscribed Stock Amendment Bill 2013

 

 

(Amendments and request for amendment to be moved by the Leader of the Australian Greens, Senator Milne, during consideration in committee of the whole of message no. 2 from the House of Representatives)

(1)     Title, page 1 (lines 1 and 2), omit “ amend the Commonwealth Inscribed Stock Act 1911 , and for related purposes ”, substitute “ remove the limit on stock and securities on issue, and for other purposes ”.

[removing the debt limit]

(2)     Schedule  1 , items 1 and 2, page 3 (lines 5 to 11) , omit the items, substitute:

1  Section 5

Repeal the section.

2  Subsection 51JA(2)

Omit “, disregarding stock and securities of the kind mentioned in subsection 5(2),”.

3  After subsection 51JA(2)

Insert:

          (2A)  In working out the total face value of stock and securities for the purposes of subsection (2), disregard:

                     (a)  stock and securities issued in relation to money borrowed under the Loan (Temporary Revenue Deficits) Act 1953 ; and

                     (b)  stock and securities loaned by the Treasurer under a securities lending arrangement under section 5BA of the Loans Securities Act 1919 , or held by or on behalf of the Treasurer for the purpose of such an arrangement; and

                     (c)  stock and securities invested under subsection 39(2) of the Financial Management and Accountability Act 1997 ; and

                     (d)  stock and securities on issue as at the start of 13 July 2008, other than Treasury Fixed Coupon Bonds.

Note:          The time referred to in paragraph (d) is when item 4 of Schedule 1 to the Commonwealth Securities and Investment Legislation Amendment Act 2008 commenced.

4  At the end of section 51JA

Add:

             (5)  For the purposes of this section:

                     (a)  the face value of a Treasury Indexed Bond is taken to be its face value at the time it was issued; and

                     (b)  the loan of stock or a security is taken to include an arrangement under which it is sold and repurchased.

[removing the debt limit]

( 3 )     Page 3 (after line 11) , at the end of the Bill, add:

Schedule 2 — Amendment of the Charter of Budget Honesty Act 1998

   

1  At the end of clause 2 of Schedule 1

Add:

Additional statements about Commonwealth stock and securities

             (7)  In certain cases where the face value of Commonwealth stock and securities on issue has increased by $50 billion or more since a previous report or statement under the Charter of Budget Honesty, the Treasurer is to table a statement setting out reasons for the increase (see Part 9).

2  Subclause 3(1) of Schedule 1

Insert:

Commonwealth stock and securities means stock and securities on issue under the Commonwealth Inscribed Stock Act 1911 (the CIS Act ) or the Loans Securities Act 1919 (disregarding stock and securities of the kind mentioned in subsection 51JA(2A) of the CIS Act).

debt statement , for a report under Part 5 or 7, means a statement that includes:

                     (a)  the following information about Commonwealth stock and securities on issue, at the time of the report and for the financial year to which the report relates and the following 3 financial years:

                              (i)  the value of the stock and securities (including their market and face value, and their value as a proportion of gross domestic product);

                             (ii)  the total expected interest expenses relating to the stock and securities; and

                     (b)  a breakdown, by maturity and timing of interest payments, of Commonwealth stock and securities on issue at the time of the report.

3  At the end of subclause 12(1) of Schedule 1

Add:

                    ; (f)  a debt statement.

4  At the end of subclause 16(1) of Schedule 1

Add:

             ; and (c)  contain a debt statement.

5  At the end of subclause 24(1) of Schedule 1

Add:

                   ; (e)  a debt statement.

6  At the end of paragraph 26(a) of Schedule 1

Add:

                             (v)  the information required by paragraph 24(1)(e); and

7  At the end of Schedule 1

Add:

Part 9 — Additional statements about Commonwealth stock and securities

   

33   Additional statements about Commonwealth stock and securities

             (1)  This clause applies when the actual face value of Commonwealth stock and securities on issue has increased by $50 billion or more since whichever of the following last occurred:

                     (a)  a budget economic and fiscal outlook report, a mid-year economic and fiscal outlook report or a pre-election economic and fiscal outlook report was publicly released;

                     (b)  a statement under this clause was tabled.

             (2)  The Treasurer is to table in each House of the Parliament, within 3 sittings days of that House after the increase referred to in subclause (1), a statement setting out the reasons for the increase, including the extent to which any of the following contributed to the increase:

                     (a)  lower than expected revenue;

                     (b)  higher than expected spending;

                     (c)  capital purchases;

                     (d)  grants to State and Territory governments for infrastructure.

8  Application—statements under clause 33 of the Charter of Budget Honesty

Clause 33 of Schedule 1 to the Charter of Budget Honesty Act 1998 applies in relation to a report referred to in paragraph (1)(a) of that clause that is publicly released on or after the commencement of this item.

[removing the debt limit]

7451-EM

 

 

 

Commonwealth Inscribed Stock Amendment Bill 2013

 

 

 

(Amendments and request for amendment to be moved by the Leader of the Australian Greens, Senator Milne, during consideration in committee of the whole of message no. 2 from the House of Representatives)

 

 

 

Statement pursuant to the order of

the Senate of 26 June 2000

 

 

 

Amendment (2)

 

The amendment removes the limit on the total face value of stocks and securities that may be on issue under the Commonwealth Inscribed Stock Act 1911 and the Loans Securities Act 1919 at any time.

On the basis that the projected increase in debt will result in increased expenditure under the standing appropriations in sections 13AA, 13A and 13B of the Commonwealth Inscribed Stock Act 1911 , amendment (2) should be moved as a request.

 

7451-EM

 

 

 

Commonwealth Inscribed Stock Amendment Bill 2013

 

(Amendments and request for amendment to be moved by the Leader of the Australian Greens, Senator Milne, during consideration in committee of the whole of message no. 2 from the House of Representatives)

 

 

 

Statement by the Clerk of the Senate pursuant

to the order of the Senate of 26 June 2000

 

 

 

Amendment (2)

 

The Senate has long followed the practice that it should treat as requests amendments which would clearly, necessarily and directly result in increased expenditure under a standing appropriation .

 

If, as stated, this amendment would result in increased expenditure under the standing appropriations in sections 13AA, 13A and 13B of the Commonwealth Inscribed Stock Act 1911 , it is in accordance with the precedents of the Senate that this amendment be moved as a request.