Appropriation Bill (No. 2) 2015
Plain English Summary
Overview
This bill retrospectively approves $9.11 million of unforeseen government spending from the 2014-15 financial year. It also changes the rules so that Queensland government departments can borrow from lenders other than the Queensland Treasury Corporation, as long as the Treasurer approves.
Who it affects
Mainly government departments and the Queensland Treasury Corporation. There is no direct impact on most Queenslanders beyond the formal parliamentary approval of past spending.
Key changes
- Retrospectively authorises $9,110,000 in unforeseen 2014-15 spending across seven departments and agencies
- The biggest item is a $5.8 million equity adjustment for the Public Safety Business Agency
- Other allocations include $2.5 million for Agriculture and Fisheries and $280,000 for the Electoral Commission of Queensland
- Removes the rule that departments can only borrow from the Queensland Treasury Corporation, allowing finance leases and PPPs with other lenders
- The Treasurer's approval is still required before any department borrows from anyone
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee16 Sept 2015View Hansard
Referred to Finance and Administration Committee
The Finance and Administration Committee examined the bill over approximately five weeks, holding a public departmental briefing with Queensland Treasury. The committee recommended the bill be passed, noting it authorises the lowest amount of unforeseen expenditure ($9.11 million) over the past 18 years. The bill also makes a technical amendment to the Financial Accountability Act 2009 to allow departments to enter into finance leases with the private sector, since Queensland Treasury Corporation has exited the leasing business.
Key findings (5)
- The supplementary appropriation of $9.11 million was the lowest unforeseen expenditure in 18 years, attributed to improved scrutiny of agency spending
- Over 60 per cent of unforeseen expenditure was incurred by the Public Safety Business Agency for police station and watch-house upgrades, with a further 28 per cent by the Department of Agriculture and Fisheries for Queensland Agricultural Training Colleges
- The amendment to section 71 of the Financial Accountability Act removes the requirement that departments borrow only from Queensland Treasury Corporation, as QTC has exited the leasing business
- The Treasurer's approval will continue to be required for all departmental borrowings, and traditional borrowings will continue through QTC except in exceptional circumstances
- The committee found no fundamental legislative principle issues with the bill
Recommendations (1)
- The committee recommends that the Appropriation Bill (No. 2) 2015 be passed.
Committee report tabled
▸In Detail28 Oct 2015View Hansard
As Treasurer, introduced the bills seeking parliamentary approval for $12 million in unforeseen expenditure from 2014-15, noting this was the lowest supplementary appropriation in 18 years. Highlighted the government's fiscal management including budget surpluses and debt reduction.
“This outcome for 2014-15 is indicative of the measured and responsible fiscal approach of the Palaszczuk government.”— 2015-10-28View Hansard
Confirmed opposition support for both bills but attributed the low unforeseen expenditure to the LNP's fiscal discipline during its time on the treasury benches. Criticised the Labor government's debt management and lack of an economic plan.
“I cannot accept his assertion that it was due to the management of the Palaszczuk government because the LNP was on the treasury benches for the majority of the 2014-15 financial year.”— 2015-10-28View Hansard