Bills Digest No. 77 2000-01
Appropriation Bill (No. 4) 2000-2001
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
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer & Copyright Details
Appropriation Bill (No. 4) 2000-2001
Date Introduced: 29 November
2000
House: House of Representatives
Portfolio: Finance and
Administration
Commencement: Royal
Assent
To authorise the Minister for Finance to issue $378.3
million from the Consolidated Revenue Fund (CRF) in addition to the funds
appropriated by the Appropriation Act (No. 2) 2000-2001 for proposed
expenditure on capital works and services, payments to the States and
Territories and other services.
For general information on the Appropriation process
refer to Bills Digest No. 76, 2000-01 for the
Appropriation Bill (No. 3) 2000-01.
As noted in the Second Reading Speech to the additional
appropriation Bills, there have also been savings in various items from
the Budget appropriations and this must be considered when determining
the total effect on government outlays from the additional amounts appropriated.
Savings from the initial amount appropriated by Appropriation Acts Nos.
1 and 2 are contained in the Department of Finance and Administration
Information Paper titled Statement of Savings in Annual Appropriations.
Funding for expenditure other than for 'the ordinary
annual services of government', principally capital expenditure and grants
to the States and Territories, is contained in Appropriation Act No.
2 2000-2001 and this Bill. The Appropriation Act (No. 2) appropriated
approximately $5.129 billion while this Bill appropriates an additional
$378.3 million. Estimated savings from the Appropriation Act (No. 2) are
$720.5 million, the majority of which ($659.4 million) comes from the
Defence portfolio. This saving comes from 'equity injections and loans'(1)
and has been transferred to the annual expenditure of that portfolio.(2)
Other major estimated savings occur in the Family and Community Services
portfolio ($28 million), from grants to the States and Territories for
community housing and support; and the Health and Aged care portfolio
($20.2 million) from 'equity injections and loans'.(3)
Outline of Major Additional Appropriations
Major additional appropriations effected by this Bill
are:
- Defence: $100 million is to be appropriated for a loan to the
Defence Housing Authority (DHA). DHA currently has no debt and the loan
is described as assisting DHA 'in moving to a more commercial capital
structure.'(4)
- Industry, Science and Resources: a total of $94.8 million is
to be appropriated, $45.9 million for grants to the States and Territories
(a grant to NSW to cover the payment of GST on non-premium Olympic games
tickets), $42 million for the administered capital of the portfolio
(for a deferred loan payment on the Syntroleum Sweetwater Investment
Strategy)(5) and $6.9 million as an equity injection for
the Australian Nuclear Science and Technology Organisation.
- Health and Aged Care: Of the $87.9 million appropriated for
this portfolio, $57 million is to fund the supply of plasma to the Red
Cross. The item is listed as Administered capital' and no further details
are given of the use of the funds. The other major items of approximately
$10 million each relate to the re-phasing of funding for methadone programs
from 1999-2000 and additional amounts for Medicare for pathology services
and the re-phasing of funds relating to Kosovar and East Timor from
1999-2000.
- Other major appropriations relate to the carry-over of capital funds
for the Attorney-General's ($20.6 million) and Immigration and Multicultural
Affairs ($26.6 million) portfolios.
In regard to allocation to the States for the outcomes
specified in the Schedule, clause 7 provides that the Finance Minister
may issue the lesser of the amount specified in the relevant Departmental
allocation and the amount determined by the Finance Minister to be the
actual expenditure incurred for that purpose. The clause also contains
the requirement that the funds may only be allocated to achieve the specified
outcome.
Clause 8 contains similar provisions as clause
7 but relates to administered items.
Where an appropriation is made for an administered capital
purpose, the outcome that may be achieved must be for a purpose listed
in Schedule 2 of the Bill or in a Schedule to a 2000-2001 Appropriation
Act (clause 9).
In relation to appropriations for capital expenditure
for a Department, where an Act provides that an amount is to be allocated
to a Department and this Bill contains a capital item for the Department,
the Finance Minister must issue the full amount of the item (clause
10).
The Minister will be given power to issue up to an additional
of $215 million over the year to take account of unforeseen expenditure
or where there has been an 'erroneous omission or understatement' in relation
to extra expenses (clause 11).
The relevant Minister listed in Schedule 1 of the Bill
will be able to determine conditions under which payments to the States
and Territories may be made (clause 14).
Clause 15 will formally appropriate the funds
for the purposes of the Bill.
- 'Equity injection represents the additional contribution to Defence
by the Commonwealth as owner. It is determined on the basis of the amount
additional to the Department outcome appropriation required to fund
Defence up to the government-agreed level of global funding. Within
Defence's global flexibilities the injection can be used for any purpose
that increases the net assets of Defence. It is planned to use these
funds for investment in new or replacement capital equipment or facilities.
The injection is not tied to any specific capital projects.' - Defence
Portfolio Budget Statement 2000-01p.vii.
- The transferred funds are appropriated by the Appropriation Bill (No.
3) 2000-01 and readers are referred to the Digest
for that Bill for further information.
- For this portfolio, equity injection and loans refers to $22.03 million
appropriated for 2000-01 to cover the expected operating deficit of
the portfolio - Portfolio Budget Statement, p. 267.
- Portfolio Additional Estimates Statements 2000-01, p. 108. http://www.defence.gov.au/index.html
- Syntroleum involves a process to convert gas to liquid fuel. The loan
is subject to conditions and will assist in developing the commercialisation
of the process.
Chris Field and Ian Ireland
16 January 2001
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
© Commonwealth of Australia 2000
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