Appropriation Bill (No. 2) 2016
Plain English Summary
Overview
This bill gives Parliament's formal approval for $390.126 million of extra government spending that occurred during the 2015-16 financial year beyond what the original budget allowed. It is a routine housekeeping Act required whenever departments spend more than their original appropriation.
Who it affects
The bill affects Queensland government departments whose excess spending is being authorised retrospectively. It has no direct impact on citizens or services.
Key changes
- Authorises $390.126 million in supplementary appropriation for 2015-16
- Queensland Treasury receives the largest share ($296.985 million) as administered items
- Other recipients include Communities/Child Safety ($40.476m), Energy and Water Supply ($39.509m), and Public Safety Business Agency ($8.895m)
- Smaller amounts go to the Electoral Commission, Office of the Governor, Inspector-General of Emergency Management, and Queensland Audit Office
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee13 Sept 2016View Hansard
Referred to Finance and Administration Committee
The Finance and Administration Committee examined the Appropriation Bill (No. 2) 2016, which sought parliamentary approval for $390.126 million in supplementary appropriation for unforeseen expenditure incurred by eight departments in the 2015-16 financial year. The bulk of the unforeseen expenditure ($296.985 million) was for Queensland Treasury to pay down debt under the government's enhanced Debt Action Plan. The committee recommended the bill be passed, noting the Acting Auditor-General had issued an unmodified opinion on the Consolidated Fund Financial Report.
Key findings (5)
- The $390.126 million in unforeseen expenditure was a relatively low level of supplementary appropriation compared with the previous 19 years
- The largest component ($296.985 million) was for Queensland Treasury debt repayment, facilitated by early dividend payments from government-owned corporations
- Other significant unforeseen expenditure included $40.476 million for the Department of Communities, Child Safety and Disability Services and $39.509 million for the Department of Energy and Water Supply
- The Acting Auditor-General confirmed the Consolidated Fund Financial Report presented a true and fair view of transactions for 2015-16
- Lapsed appropriation of $2.4 billion (just over 4% of total appropriation) was lower than in recent years and primarily reflected reprofiling of spending into future years
Recommendations (1)
- The committee recommends that the Appropriation Bill (No. 2) 2016 be passed.
Committee report tabled
▸Second Reading1 Nov 2016View Hansard
▸11 members spoke7 support1 oppose3 mixed
As Treasurer, moved the second reading of the bill seeking parliamentary approval of supplementary appropriation of $390.126 million for unforeseen expenditure in 2015-16, 76% of which was used to repay debt under the government's enhanced Debt Action Plan.
“The amount of unforeseen expenditure in the 2015-16 budget represents 0.74 per cent of the published budget and is consistent with the level of unforeseen expenditure incurred over the previous three years.”— 2016-11-01View Hansard
As shadow Treasurer, confirmed the LNP opposition would support the bill but used the debate to criticise the government's economic management, job losses, rising debt, and raids on superannuation and government owned corporations.
“The LNP opposition will support this bill ... To see 23,000 jobs lost in this state last month is no reason to celebrate, despite what Labor thinks.”— 2016-11-01View Hansard
As committee chair, supported the bill citing Queensland's AA+ credit rating, strongest forecast economic growth of any state, and the repayment of $296.985 million in debt from early government owned corporation dividends.
“Queensland's economic plan is working: debt is lower, unemployment is lower and growth is higher.”— 2016-11-01View Hansard
Supported the bill, highlighting Deloitte Access Economics forecasts of leading economic growth and the rating agencies' confidence, while criticising the former LNP government's economic record.
“Queensland's economic plan is working. Debt is lower, unemployment is lower, and growth is higher.”— 2016-11-01View Hansard
Used the debate on the bill primarily to criticise the government's failure to distribute $5 million announced six months earlier for cluster fencing in Western Queensland, while broadly noting the committee had heard from the Under Treasurer.
“Get the money out and get it out fast! ... Not one red cent has hit the ground.”— 2016-11-01View Hansard
Supported the bill, noting the debt reduction of $296.985 million funded by extra GOC dividends and the payroll tax apprentice rebate program benefiting over 3,300 businesses.
“Under Labor debt is lower, unemployment is lower and economic growth is higher. The Palaszczuk government has undertaken budget repair that is fair for all Queenslanders.”— 2016-11-01View Hansard
Supported the bill, citing positive economic indicators such as nation-leading growth forecasts and the S&P rating's acknowledgement of strong financial management and budgetary performance.
“Our economic plan and two state budgets have seen our economy return from the depths of the LNP days when the member for Clayfield was the treasurer, and we will continue with that disciplined approach.”— 2016-11-01View Hansard
Heavily criticised Labor's economic management, loss of AAA rating, raids on superannuation funds, and broader administrative incompetence across transport and services.
“This Palaszczuk Labor government is not just asleep at the wheel; it is not even at the wheel! ... They cannot manage the finances.”— 2016-11-01View Hansard
Supported the bill, highlighting the Debt Action Plan's progress, early GOC dividends reducing debt by $296.985 million, and the importance of the Community Service Obligation under the uniform tariff policy for regional Queensland.
“This Appropriation Bill reflects the good news that is happening in our economy ... Our Debt Action Plan is delivering results.”— 2016-11-01View Hansard
Focused on debt burden on future generations and expressed concerns about underspending on infrastructure and education projects in Toowoomba, including the Wilsonton hall and Second Range Crossing.
“When we have to borrow money to run the government, that means that a future generation will have to pay that money back, plus the interest.”— 2016-11-01View Hansard
Supported the bill, highlighting child safety investigations, renewable energy investments and the Debt Action Plan's progress in reducing general government debt by $10 billion below the LNP's projection.
“General government sector debt in 2016-17 is expected to be $37.775 billion. That is $10 billion less than projected in Tim Nicholls's 2014-15 budget.”— 2016-11-01View Hansard