Appropriation (2017/18 Confirmation and Validation) Bill
Government Bill
118—1
Explanatory note
General policy statement
It is a basic constitutional principle that the Government can spend public money and incur expenses and capital expenditure only in accordance with appropriations made by an Act of Parliament and in an otherwise lawful manner.
However, Parliament has, in the Public Finance Act 1989 (the Act), conferred limited authority on the Governor-General by Order in Council to vary appropriations made by Parliament and on the Minister of Finance to approve expenditure in excess of an existing appropriation by Parliament. Any other unappropriated expenditure must be validated by an Appropriation Act.
Confirming Public Finance (Transfers Between Outputs) Order 2018
Section 26A of the Act authorises the Governor-General by Order in Council to direct that an amount appropriated in a Vote for an output expense be transferred to another output expense appropriation in that Vote. There are 3 restrictions. First, the transfer must not increase that appropriation for the financial year by more than 5%. Secondly, there must not have been any other transfer under section 26A of the Act to that appropriation during the financial year. Thirdly, the total amount appropriated for all output expense appropriations for that Vote for the financial year must remain unaltered. A clause that confirms those Orders in Council must be included in an Appropriation Bill that applies to that financial year.
This Bill confirms the Public Finance (Transfers Between Outputs) Order 2018, which was made under section 26A of the Act (clause 5).
Confirming unappropriated expenditure
Section 4 of the Act prohibits the incurring of expenses or capital expenditure, except as expressly authorised by an appropriation, or other authority, by or under an Act. Sections 8 and 9 of the Act require appropriations to be limited to a specified amount and limited to the scope of the appropriation.
Section 26B of the Act authorises the Minister of Finance to approve the incurring of expenses or capital expenditure in the last 3 months of the financial year in excess, but within the scope, of an existing appropriation by Parliament. This is subject to a limit that is the greater of $10,000 and 2% of the total amount appropriated for that appropriation by all Appropriation Acts for that financial year. The approval must be given not later than 3 months after the end of the financial year concerned. Expenses and capital expenditure incurred under the approval must be confirmed in an Appropriation Bill that applies to that financial year.
This Bill confirms expenses and capital expenditure incurred for the 2017/18 financial year with the approval of the Minister of Finance under section 26B of the Act (clause 6). Details of this confirmation are set out in Schedule 1.
Validating unappropriated expenditure
Section 26C of the Act requires the incurring of expenses or capital expenditure without appropriation, or other authority, by or under an Act to be validated by an Act of Parliament.
For the 2017/18 financial year, certain expenses and capital expenditure were incurred that require validation by this Bill in accordance with section 26C of the Act. Clause 7 validates these expenses and capital expenditure, the details of which are set out in Schedules 2 to 6, as follows:
Schedule 2 contains details of expenses and capital expenditure incurred in excess, but within the scope, of existing appropriations and with the authority of an Imprest Supply Act:
Schedule 3 contains details of expenses that were incurred not within the scope of any existing appropriations and with the authority of an Imprest Supply Act:
Schedule 4 contains details of expenses incurred in excess, but within the scope, of existing appropriations and without the authority of an Imprest Supply Act:
Schedule 5 contains details of expenses and capital expenditure that were incurred not within the scope of any existing appropriations and without the authority of an Imprest Supply Act:
Schedule 6 contains details of expenses and capital expenditure incurred in advance of appropriation and without the authority of an Imprest Supply Act.
Departmental disclosure statement
A departmental disclosure statement is not required for this Bill.
Clause by clause analysis
Clause 1 is the Title clause.
Clause 2 is the commencement clause. The Bill comes into force on the day after the date on which it receives the Royal assent.
Clause 3 states the purpose of the Bill, which is to confirm and validate matters relating to the 2017/18 financial year.
Clause 4 is an interpretation clause.
Clause 5 confirms the Public Finance (Transfers Between Outputs) Order 2018. That order, which came into force on 30 June 2018, directed that fiscally neutral transfers be made decreasing the amounts appropriated for certain output expense appropriations and increasing the amounts appropriated for certain other output expense appropriations.
Clause 6 confirms the incurring of expenses and capital expenditure for the 2017/18 financial year in excess, but within the scope, of existing appropriations in accordance with the approval of the Minister of Finance under section 26B of the Public Finance Act 1989. The expenses and capital expenditure confirmed by this clause are set out in Schedule 1.
Clause 7 validates, for the purposes of section 26C of the Public Finance Act 1989, the incurring of expenses and capital expenditure by departments for the 2017/18 financial year without appropriation, or other authority, by or under an Act. The expenses and capital expenditure validated by this clause are set out in Schedules 2 to 6.
Hon Grant Robertson
Appropriation (2017/18 Confirmation and Validation) Bill
Government Bill
118—1
Contents
The Parliament of New Zealand enacts as follows:
1 Title
This Act is the Appropriation (2017/18 Confirmation and Validation) Act 2019.
2 Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
3 Purpose
The purpose of this Act is to confirm and validate matters relating to the 2017/18 financial year.
4 Interpretation
(1)
In this Act, 2017/18 financial year means the financial year ending with 30 June 2018.
(2)
Terms or expressions used and not defined in this Act but defined in the Public Finance Act 1989 have, in this Act, the same meanings as in the Public Finance Act 1989.
5 Confirmation of Order in Council directing transfer of amounts between output expense appropriations
The Public Finance (Transfers Between Outputs) Order 2018 is confirmed.
6 Confirmation of expenses and capital expenditure incurred in excess of existing appropriations and approved by Minister of Finance
(1)
The incurring of expenses and capital expenditure approved by the Minister of Finance under section 26B of the Public Finance Act 1989 for the 2017/18 financial year and described in subsections (2) and (3) is confirmed.
(2)
The expenses and capital expenditure are the expenses and capital expenditure incurred in excess, but within the scope, of the existing appropriations set out in column 3 of Schedule 1.
(3)
The amounts of the approved expenses and capital expenditure are shown in column 4 of Schedule 1 alongside the existing appropriation for which the approval was given.
7 Validation of unappropriated expenses and capital expenditure for 2017/18 financial year
(1)
The incurring of expenses or capital expenditure by a department in the circumstances set out in subsection (2), (3), (4), (5), or (6) is validated for the purposes of section 26C of the Public Finance Act 1989.
(2)
The circumstances in this subsection are that,—
(a)
for the 2017/18 financial year, the department incurred expenses or capital expenditure in excess, but within the scope, of the existing appropriations set out in column 3 of Schedule 2 alongside that department; and
(b)
the expenses or capital expenditure referred to in paragraph (a) were incurred under the authority of an Imprest Supply Act.
(3)
The circumstances in this subsection are that,—
(a)
for the 2017/18 financial year, the department incurred expenses, not within the scope of any existing appropriation, against the category of expenses set out in column 3 of Schedule 3 alongside that department; and
(b)
the expenses referred to in paragraph (a) were incurred under the authority of an Imprest Supply Act.
(4)
The circumstances in this subsection are that,—
(a)
for the 2017/18 financial year, the department incurred expenses in excess, but within the scope, of the existing appropriations set out in column 3 of Schedule 4 alongside that department; and
(b)
the expenses referred to in paragraph (a) were not incurred under the authority of an Imprest Supply Act.
(5)
The circumstances in this subsection are that,—
(a)
for the 2017/18 financial year, the department incurred expenses or capital expenditure, not within the scope of any existing appropriation, against the categories of expenses or capital expenditure set out in column 3 of Schedule 5 alongside that department; and
(b)
the expenses or capital expenditure referred to in paragraph (a) were not incurred under the authority of an Imprest Supply Act.
(6)
The circumstances in this subsection are that,—
(a)
for the 2017/18 financial year, the department incurred expenses or capital expenditure in advance of the appropriations set out in column 3 of Schedule 6 alongside that department; and
(b)
the expenses or capital expenditure referred to in paragraph (a) were not incurred under the authority of an Imprest Supply Act.
(7)
In this section,—
capital expenditure means the amount of capital expenditure set out in column 4 of, as appropriate, Schedule 2, 5, or 6 alongside the relevant department
department means a department specified in column 1 of, as appropriate, Schedule 2, 3, 4, 5, or 6
expenses means the amount of expenses set out in column 4 of, as appropriate, Schedule 2, 3, 4, 5, or 6 alongside the relevant department.
Schedule 1 Confirmation of expenses and capital expenditure incurred in excess, but within scope, of existing appropriations for 2017/18 financial year with approval of Minister of Finance
s 6
Column 1 | Column 2 | Column 3 | Column 4 | |||
---|---|---|---|---|---|---|
Administering department | Vote | Appropriation | Amount $(000) | |||
Health, Ministry of | Health | Non-Departmental Output Expenses | ||||
National Disability Support Services | 12,850 | |||||
Justice, Ministry of | Justice | Non-Departmental Output Expenses | ||||
Electoral Services | 898 | |||||
Social Development, Ministry of | Social Development | Non-Departmental Capital Expenditure | ||||
Recoverable Assistance | 2,326 | |||||
Schedule 2 Validation of expenses and capital expenditure incurred in excess, but within scope, of existing appropriations and with authority of Imprest Supply Act for 2017/18 financial year
s 7
Column 1 | Column 2 | Column 3 | Column 4 | |||
---|---|---|---|---|---|---|
Administering department | Vote | Appropriation | Amount $(000) | |||
Business, Innovation and Employment, Ministry of | Business, Science and Innovation | Non-Departmental Output Expenses | ||||
Communications: Emergency Telecommunications Services | 1,200 | |||||
Primary Industries, Ministry for | Primary Industries and Food Safety | Non-Departmental Other Expenses | ||||
Compensation and Ex-Gratia Payments following a Biosecurity Event | 6,109 | |||||
Multi-Category | ||||||
Border and Domestic Biosecurity Risk Management | 2,637 | |||||
Transport, Ministry of | Transport | Non-Departmental Capital Expenditure | ||||
Joint Venture Airports | 597 | |||||
Schedule 3 Validation of expenses incurred not within scope of existing appropriations and with authority of Imprest Supply Act for 2017/18 financial year
s 7
Column 1 | Column 2 | Column 3 | Column 4 | |||
---|---|---|---|---|---|---|
Administering department | Vote | Category of expenses | Amount $(000) | |||
Health, Ministry of | Health | Non-Departmental Other Expenses | ||||
Mental Health and Addictions Support Workers Pay Equity Claim | 23,449 | |||||
Schedule 4 Validation of expenses incurred in excess, but within scope, of existing appropriations and without authority of Imprest Supply Act for 2017/18 financial year
s 7
Column 1 | Column 2 | Column 3 | Column 4 | |||
---|---|---|---|---|---|---|
Administering department | Vote | Appropriation | Amount $(000) | |||
Business, Innovation and Employment, Ministry of | Business, Science and Innovation | Non-Departmental Output Expenses | ||||
Communications: Emergency Telecommunications Services | 66 | |||||
Non-Departmental Other Expenses | ||||||
Communications: Telecommunications Development Levy Funded Procurement - Non-Urban Infrastructure | 16 | |||||
Building and Housing | Multi-Category | |||||
Temporary Accommodation Services | 3,340 | |||||
Health, Ministry of | Health | Departmental Output Expenses | ||||
Managing the Purchase of Services | 1,395 | |||||
Prime Minister and Cabinet, Department of | Prime Minister and Cabinet | Non-Departmental Other Expenses | ||||
Rehabilitation of Kaikōura Harbour | 1,145 | |||||
Schedule 5 Validation of expenses and capital expenditure incurred not within scope of existing appropriations and without authority of Imprest Supply Act for 2017/18 financial year
s 7
Column 1 | Column 2 | Column 3 | Column 4 | |||
---|---|---|---|---|---|---|
Administering department | Vote | Category of expenses or capital expenditure | Amount $(000) | |||
Business, Innovation and Employment, Ministry of | Business, Science and Innovation | Non-Departmental Capital Expenditure | ||||
Communications: Broadband Investment (Crown Fibre Holdings Capital Costs) 2016-2021 | 45,000 | |||||
Internal Affairs, Department of | Internal Affairs | Non-Departmental Output Expenses | ||||
Members of the Executive – Travel | 571 | |||||
Transport, Ministry of | Transport | Non-Departmental Other Expenses | ||||
Auckland City Rail Link Finance Costs | 14,453 | |||||
Schedule 6 Validation of expenses and capital expenditure incurred in advance of appropriation and without authority of Imprest Supply Act for 2017/18 financial year
s 7
Column 1 | Column 2 | Column 3 | Column 4 | |||
---|---|---|---|---|---|---|
Administering department | Vote | Appropriation | Amount $(000) | |||
Business, Innovation and Employment, Ministry of | Building and Housing | Multi-Category | ||||
Temporary Accommodation Services | 880 | |||||
Internal Affairs, Department of | Internal Affairs | Non-Departmental Capital Expenditure | ||||
Capital Investments – Lake Taupō | 1,879 |