Christopher Pyne (Sturt, Liberal Party, Minister for Ageing) Share this | Hansard source

It is my duty to make a statement to the House concerning a Senate amendment with respect to this bill and the matter of constitutional principle it raises.

Proposed Senate amendment No. 3 is expected, if enacted, to have the effect of increasing payments to suppliers of pharmaceutical products. That is, it is expected to have the effect of increasing expenditure under the standing appropriation in the principal Act.

There is doubt that the Senate may proceed in these circumstances by way of amendment because of section 53 of the Constitution. Among other things, this section prohibits the Senate from amending a bill so as to increase ‘any proposed charge or burden on the people’.

The view has been taken that where expenditure is appropriated in these circumstances, section 56 of the Constitution requires that the proposed appropriation must be recommended by a message from the Governor-General. I understand that such a message has been obtained in this case.

The House will need to consider the way in which it should proceed to deal with the matters raised in Senate amendment No. 3. If it wishes to entertain the proposal reflected in the amendment, it may choose to proceed by alternative means.

The matter for consideration is not so much one of the privileges and rights between the two Houses but observance of the requirements of the Constitution concerning the appropriation of revenue.

I move:

That the House endorses the statement of the Speaker in relation to the constitutional questions raised by Message No. 554 transmitted by the Senate in relation to the National Health Amendment (Pharmaceutical Benefits Scheme) Bill 2007.

Question agreed to.

I indicate to the House that the government proposes that Senate amendments (1) and (2) and (4) to (10) be agreed to, and that amendment (3) be disagreed to but that an amendment be made in place there-of. I suggest, therefore, that it may suit the convenience of the House to first consider amendments (1) and (2) and (4) to (10) and, when those amendments have been disposed of, to consider amendment (3). I move:

That Senate amendments Nos 1, 2 and 4 to 10 be agreed to.

See this speech in context