Bills Digest 121 1996-97
Appropriation Bill (No. 3) 1996-97
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
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Published by the Department of the Parliamentary Library, 1997.
This page was prepared by the Parliamentary Library, Commonwealth of
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Last updated: 9 April 1997
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