Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Hansard source

I will respond to the question that Senator Abetz raised. Before I do, regarding a couple of matters that Senator Boyce raised, I have asked for information as to the efficiency savings from a building where insulation is installed but there are no curtains and the efficiency savings that result where there are curtains. I will attempt to obtain some specific response—the officials are not nodding, so we should get a response on that. I understand broadly that there is a saving whether there are or are not curtains, but I will see if I can get some specifics on that.

I turn to the issue raised by Senator Abetz, which referred to page 71 of the UEFO. I acknowledge that Senator Abetz raised this at the committee hearing on 6 February. On page 2 of the Hansard Senator Abetz questioned Mr Geoff Leeper, deputy secretary of FaHCSIA:

Senator ABETZ—Can I take you to page 71 of the UEFO. At the very top of that page, I am told that the Department of the Treasury is getting that money, if I have the figures right.

Mr Leeper—I have that page in front of me. It certainly says Treasury, but the money is being appropriated to FaHCSIA.

Senator ABETZ—So the money is being appropriated to FaHCSIA—

Mr Leeper—That is my understanding, and it is in our portfolio supplement additional estimates statements at page 8. That is where our part of the appropriation bills is reconciled.

As Senator Abetz noted, on page 71 of the Updated Economic and Fiscal Outlook, which I have in front of me, it does indicate that the Department of the Treasury would receive funding for reduced homelessness and meeting priority needs. Then, on page 8 of FaHCSIA’s portfolio supplement, it indicates they would receive the funding. There is no error. The UEFO measure description was drafted to reflect what is expected to happen in practice in the post-COAG Commonwealth-state funding arrangements for this type of program. However, in drafting the appropriations legislation it was considered prudent to allocate the appropriation to the relevant portfolio, which in this case is FaHCSIA, until the legislation necessary to implement the new Commonwealth-state funding arrangements has been passed into law. The new intergovernmental agreement is effective from 1 January 2009 and provides that all payments to the states will be made through one-monthly payments from the Commonwealth Treasury to state treasuries. However, the intergovernmental agreement also provides for a transitional period to 30 June 2009 in recognition that it will take time to implement fully the new arrangements.

I am informed, Senator Abetz, that legislation to implement the new intergovernmental agreement will be introduced by the Treasurer this week in the House of Representatives. However, because of the obviously urgent nature of the Nation Building and Jobs Plan, rather than waiting for that new framework these appropriations for payments to the states through parliament are consistent with the current method in current law of appropriating payments to the states rather than under the new federal financial framework. This means that appropriations are allocated to the relevant portfolio departments rather than to the Treasury.

Further, it is prudent on the part of the government not to pre-empt passage of the new arrangement through parliament. When the federal financial relations bill is introduced by the Treasurer—as I have indicated, that will be this week—it will provide replacement appropriations for payments to the states and those appropriations will be consistent with the new federal financial framework.