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Legislative Assembly for the ACT: 1995 Week 9 Hansard (23 November) . . Page.. 2588 ..

SUBJECT: APPROPRIATION BILL 1995 - ABILITY THE

LEGISLATIVE ASSEMBLY TO DIRECT THAT FUNDS
BE SPENT

Question and Short Answer

Q. Can the Legislative Assembly direct that funds appropriated under the Appropriation Bill 1995 must be spent?

A. As the Bill stands at the moment, it would appear not. However, it may be possible by amendment.

If there were a transfer of funds from, for example, the Minister's Advance to Education, it does not mean that the money appropriated must be spent. An appropriation merely allows the expenditure of public moneys: see the terms of the Appropriation Bill 1995 and the Audit Act 1989.

2. The Appropriation Bill 1995 provides, at clause 4, that the Treasurer may issue a certain sum out of the Consolidated Revenue Fund and apply it in respect of services provided in the financial year by the appropriation units in the Schedule. The Audit Act 1989 provides, at section 37(1) that:

"The Minister may make payments from the Territory Public Account in accordance with an appropriation of the Consolidated Fund."

3. However, a requirement that money appropriated must be spent may be technically achievable by a provision in the Appropriation Bill 1995 expressly directing expenditure to occur. I note that somewhat similar action was taken in respect of the 1993-94 Appropriation Bill where there was a provision inserted into the Bill which directed that money appropriated for education could not be spent on redundancy packages.

4. I am of the opinion that such a provision would override the procedures under the Audit Act 1989 that provide for the Executive, via the Treasurer, to have control over what money is paid from the Territory Public Account in accordance with an appropriation of the Consolidated Fund. This

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