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ACT Government Loan Bill 2014

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2013-2014

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

 

 

 

 

 

 

 

ACT Government Loan Bill 2014

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

 

 

 

 

(Circulated by the authority of the Minister for Finance,

Senator the Honourable Mathias Cormann)

 

 



 

 

ACT Government Loan Bill 2014

General Outline                       

1                This Explanatory Memorandum accompanies ACT Government Loan Bill 2014 (the Bill).

2                The Government has agreed to the provision of a loan for $1 billion to the Australian Capital Territory (ACT) for the purpose of the ACT undertaking an asbestos remediation program (the program) and for purposes related to that program.

3                The purpose of the Bill is to:

-           provide legislative authority for the entering into an agreement to make a loan to the ACT for an amount not exceeding $1 billion, for the purposes of the program and for purposes related to that program;

-           propose an appropriation from the Consolidated Revenue Fund (CRF) of $750 million for the loan of money to the ACT for the purposes of the program and for purposes related to that program.

4                As indicated, by virtue of the Bill, the Commonwealth will be able to enter into a loan agreement with the ACT under which it agrees to pay $1 billion to the ACT. The appropriation for payments under such an agreement for amounts in excess of $750 million will be provided by a future appropriation Act.

Financial Impact

5                The Bill, if enacted, would appropriate the amount specified in Clause 4.



 



Statement of compatibility with human rights

1                The Bill seeks to confer legislative authority on the Commonwealth to enter into a loan agreement with the ACT for an amount not exceeding $1 billion for the purpose of allowing the ACT to undertake an asbestos remediation program. The Bill also appropriates the Consolidated Revenue Fund (CRF) as specified in clause 4.

2                Given that the legal effect of the Bill is confined to these matters, the Bill is not seen as engaging, or otherwise affecting, the rights or freedoms relevant to the Human Rights (Parliamentary Scrutiny) Act 2011 .

 

 





 

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 the ACT Government Loan Act 2014 .

Clause 2—Commencement

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

Clause 3— ACT Government Loan

3                Clause 3:

(1)    provides the purpose of the Act, which is for the provision of a loan to the Australian Capital Territory (ACT) for the purposes of undertaking an asbestos remediation program and purposes related to that program.

(2)    provides that the terms and conditions of the loan are to be agreed in writing between the Commonwealth and ACT.

(3)    provides the total loan amount is to be determined by the agreement, and must not exceed $1 billion.

(4)    specifies that the loan is to be made by one or more payments, the details of which are to be determined by the agreement.

(5)    specifies that the Minister administering the Australian Capital Territory (Self-Government) Act 1988 may enter into the agreement on behalf of the Commonwealth. The Minister who currently administers the above mentioned Act is the Minister of Infrastructure and Regional Development. The appropriation will be provided to the Department of Infrastructure and Regional Development, which will then provide the loan to the ACT.

Clause 4—Appropriation of the Consolidated Revenue Fund

4                Clause 4 provides that the CRF is appropriated as necessary for the purposes of the Bill, to the extent of $750 million. The appropriation will be provided as a Non-operating: Administered assets and liabilities item.

5                The appropriation will be brought into existence on the day after it receives Royal Assent.

6                Further payments of up to $250 million may be made available via appropriation in the 2015-16 financial year.