Andrew Murray (WA, Australian Democrats) Share this | Hansard source

by leave—I will move amendments (1) and (2) on sheet 4842, which has been circulated in the name of Senator Murray and Senator Sherry. In putting these suggested amendments to the bill, I am indebted to the work of the Senate Standing Committee for the Scrutiny of Bills. In its 14th report of 2005, entitled Accountability and standing appropriations on 30 November 2005, that committee indicated a considerable concern about the way in which standing appropriations had developed in the sense of a lack of sufficient consciousness of what had been going on and a lack of sufficient parliamentary attention to the matter.

Without quoting that short but valuable report in any depth, I would indicate that, as they say here, the numbers of special appropriations and the amounts of expenditure involved have steadily grown over the life of the Commonwealth. They now amount to more than 80 per cent of all Commonwealth government expenditures, and the following figures show the growth over the years. The report gives the growth over the years from 1909-10, when it was 10 per cent, to 2002-03, when it was 80 per cent. The report indicates that in 2002-03, special appropriations authorised $223.2 billion of expenditure, and they have continued to grow. The report says:

In the 12 months since the beginning of the 41st Parliament, 16 bills with standing appropriations have been introduced.

Over the page, the report continues:

The appropriation of money from Commonwealth revenue is a legislative function. The committee considers that, by allowing the executive government to spend unspecified amounts of money for an indefinite time into the future, provisions which establish standing appropriations may, depending on the circumstances of the legislation, infringe upon the committee’s terms of reference relating to the delegation and exercise of ... power.

Both the shadow minister and I have already referred to the work of the ANAO on these matters. In their report No. 15 of 2005, Performance audit: Financial management of special appropriations, they say at paragraph 10:

Given the fundamental importance of appropriations to Parliamentary control over expenditure, changes need to be made to secure proper appropriation management in the Commonwealth.

It is true that Finance and the government are trying to improve things, and this is the second of the acts which are dedicated to that end. The major problem that we have—the opposition in its very important function as an opposition in holding the government to account and crossbench parties like my own which have a similar interest—is being able to keep a tag on matters. Essentially, that is what these two amendments are about. They are amendments which require there to be a consolidated register of special appropriations and a consolidated register of special accounts.

You would have heard that at the end of my speech on the second reading I was struggling to find the right word to express what I was about, and it was a ‘register’—that is the word I was looking for and could not find. This lays an administrative and record-keeping onus on the department but has a very useful effect from the point of view of accountability and the ability to marshal information.

I am aware that steps have been taken in this direction by DOFA, and they have been making progress in the area. What we are seeking to do here is to require it through legislation not just of this government and of this department of finance management but for all time or for as long as the legislation stands. I think the amendments are readily understandable on their face. I move:

(1)    Schedule 3, page 24 (after line 3), before item 3, insert:

2A After section 19

Insert:

19A Consolidated register of special appropriations

        (1)    The Minister must cause to be tabled in each House of Parliament not later than 31 August each year a list:

             (a)    identifying all special appropriations and citing the statutory provision which establishes each one; and

             (b)    specifying the date of establishment of each special appropriation and the expected duration of the special appropriation; and

             (c)    specifying the purpose for which each special appropriation is established; and

             (d)    specifying the amount expended under each special appropriation during the previous financial year.

        (2)    For the purposes of this section, special appropriation means a provision which appropriates money and which does not specify the amount of money so appropriated and includes a standing appropriation.

(2)   Schedule 3, page 24 (after line 3), before item 3, insert:

2B After section 20

Insert:

20A Consolidated Register of Special Accounts

The Minister must cause to be tabled in each House of Parliament not later than 31 August each year a list:

             (a)    identifying all Special Accounts established in accordance with section 20 or 21 of this Act; and

             (b)    specifying the date of establishment of each Special Account and the expected duration of the Account; and

             (c)    specifying the purpose for which each Special Account is established; and

             (d)    specifying the amount credited to each Special Account at the close of the previous financial year and the amount expended from the Account during that year.