WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Appropriation Bill (No. 3) 1996-97
Date Introduced: 5 February 1997
House: House of Representatives
Portfolio: Finance
Commencement: The Act commences on the day on
which it receives the Royal Assent
To authorise the Minister for Finance to issue an additional
$930 275 000 from the Consolidated Revenue Fund, in addition to
funds appropriated by the Appropriation Act (No. 1) 1996
97, for the annual services of the government.
Annual authorisations for expenditure are contained in the
Appropriation Act (No. 1), which authorises expenditure
for the ordinary services of government.The Appropriation Act
(No. 2), deals with expenditure on capital works and services,
payments to the States and other purposes not authorised by special
legislation. The Parliamentary Departments are covered by the
Appropriation (Parliamentary Departments) Bills.
Additional appropriations may be sought in further Appropriation
Bills, commonly known as additional estimates, when the
appropriation sought in the Appropriation Bills is insufficient for
the financial year.
Supply Bills are required as a result of the timing factors in
the Budget cycle. The Commonwealth financial year begins on 1 July,
but the Budget may not be presented until August and it is usually
not until November that the Appropriation Bills have been enacted.
Since the Appropriation Bills of the previous financial year lapse
on 30 June, a hiatus of approximately five months duration appears
in the financial activities of the Government (In recent years
there has been a move to bring the Budget down, whether possible,
in May). This hiatus necessitates interim appropriations. This is
achieved through the passing of Supply Bills shortly before the end
of the previous financial year.
It is suggested that this Bills Digest be read in conjunction
with the Parliamentary Research Service Budget Review
1996-97.
This Bill is a 'top up' bill and for this reason the sum
appropriated, $930 275 000 is comparitively small.
The major additional appropriations effected by this Bill
are:
- Department of the Treasury $519 841 000 - $510 000 000 is
appropriated to acquire the debt of the Australian National
Railways Commission.
- Department of Health and Family Services $93 551 000:
- $19 658 000 for further administrative running costs,
- $39 140 000 for capital assistance for residential
facilities,
- $27 429 000 in respect of the Health Insurance Commission for
spending in accordance with the Health Insurance Commission
Act 1973.The Minister's second reading speech states
that this reflects increased funding for the Double Dipping
Initiative and higher administrative costs associated with changes
to the Child Care Cash Rebate payments to high income families as a
result of the decision to reduce the rebate payments for families
above the Family Tax Initiative income cutoff.'Double Dipping' in
this context occurs where a person receives a compensation payment
to cover medical and other care costs for their injury but also
continues to claim these costs from the Commonwealth through
medicare or nursing care.
- Department of Defence $92 540 000:
- $29 111 000 for compensation and legal expenses.The Minister's
second reading states that $17 000 000 is compensation associated
with the Cockatoo Island Dockyard and the balance is for a range of
other claims.Question 96 from page 2714 of Hansardfor 20
August 1996 should be noted.It is set out at Endnote 1.
- $40 028 000 for equipment and stores.The Minister's second
reading speech states that this is largely related to increased
purchases of fuel for joint exercises with the United States and
that the increase will be offset by recoveries of costs from the
United States.
- $10 050 000 for facilities operations.The Minister's second
reading speech states that this reflects an increased provision for
repairs and maintenance and minor new works activities.
- $6 000 000 to be paid to Aerospace Technologies of Australia
Aircraft Services Proprietary Limited in respect of Avalon Airport
Geelong Limited.
- Department of Veterans' Affairs $60 900 000:
- $17 604 000 for payments to Local Medical Officers and
specialist consultations and services for veterans
- $16 660 000 for maintenance of patients in non-departmental
institutions
- $7 535 000 for payments for allied health services for
veterans
- The Minister's second reading speech states that these amounts
reflect an increased demand for those services together with the
clearance of a claims backlog associated with the transfer of
claims processing to the Health Insurance Commission in December
1995.
- $12 440 000 for pharmaceutical services.
Clause 3 authorises the Minister for Finance to issue from the
Consolidated Revenue Fund a total of $930 275 000 in respect of the
year ending 30 June 1997.The Schedule gives a
portfolio and program breakup of the proposed expenditure.
Clause 4 authorises the Minister for Finance to
issue additional funds in respect of increases in salaries in 1996
97.
Other provisions of this Bill primarily provide for item changes
that may arise from the creation of various proposed agencies, such
as the National Science and Technology Centre, the Gene Technology
Authority, the Aged Care Standards Agency and the Productivity
Commission.
Cockatoo Dockyard
(Question No. 96)
Senator Margetts asked the Minister for Defence, upon notice, on
11 June 1996 With reference to the litigation involving the
department and the contractor in relation to the former Cockatoo
Dockyard at Cockatoo Island in Sydney Harbour
(1) What is the current position with the arbitration
proceedings relating to Cockatoo Island and dockyard
(2)(a) What awards have been made; (b) what awards are expected
to be made; an
(c) what are the amounts of the awards (3)(a) What legal costs
have been incurred by the parties to date; and (b) what further
legal costs are expected.
Senator Newman--The Minister for Defence has provided the
following answer to the honourable senator's question
(1) The arbitration proceedings involved two main aspects.
Cockatoo Dockyard Pty Ltd (CODOCK) sought damages for breach of
contract arising from the former Government's 1990 decision to
cease Oberon submarine refits at Cockatoo island dockyard.
Arbitration hearings on that aspect are completed. An interim
award, except for the matter of legal costs, has been given in a
decision by the Arbitrator. The Commonwealth is seeking leave to
appeal that decision in the NSW courts. The second aspect involves
the Commonwealth's claim against CODOCK for alleged contamination
of Cockatoo island. The arbitration is currently adjourned on that
aspect pending a resolution of the Commonwealth's application to
have its claims heard, as a preference, by the NSW Courts. The NSW
Supreme Court hearings on that application commenced on 12 June
1996
(2)(a) See the above answer
(b) Decisions on legal costs and any award in the Commonwealth's
contamination claim are outstanding
(c) An interim award was given by the Arbitrator against the
Commonwealth of $10 864 240 plus interest of $5 315 355 as at 8
December 1995. However, that interim award is being challenged as I
have indicated
(3)(a) Since 1992 93 the legal costs have involved three main
elements: those borne by the Attorney General's Department
totalling some $7.9m, the costs involved with non-Commonwealth
support including barristers totalling some $5.7m, and expert
consultancies including environmental studies amounting to $3.6m.
These costs cover both aspects of the arbitration and NSW court
proceedings related thereto. The legal costs incurred by CODOCK, or
its parent Australian National Industries Ltd, are a matter for
those parties to confirm
(b) A further $1.5m has been budgeted for next financial year
but this may vary depending upon the duration of legal proceedings
and the outcome of appeal applications.
Lee Jones
24 March 1997
Bills Digest Service
Information and Research Services
This Digest does not have any official legal status. Other
sources should be consulted to determine whether the Bill has been
enacted and, if so, whether the subsequent Act reflects further
amendments.
IRS staff are available to discuss the paper's contents
with Senators and Members and their staff but not with members of
the public.
ISSN 1323-9031
© Commonwealth of Australia 1996
Except to the extent of the uses permitted under the
Copyright Act 1968, no part of this publication may be
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of the Australian Parliament in the course of their official
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Published by the Department of the Parliamentary Library,
1997.
This page was prepared by the Parliamentary Library,
Commonwealth of Australia
Last updated: 9 April 1997
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