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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:
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.
(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.
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Last updated: 9 April 1997