Tony Smith (Speaker) Share this | Hansard source

It is my duty to draw to the attention of the House, the fact that the Senate amendments conveyed by this message include a proposed amendment which raises an important point of Constitutional principle.

Amendment (1) proposes to amend the definition of medical innovation to expand the purposes for which amounts may be paid from the Medical Research Future Fund Special Account. This account is established by clause 14 of the bill, with payments being made out of the Consolidated Revenue Fund under a standing appropriation in section 80 of the Public Governance, Performance and Accountability Act 2013.

There is doubt that the Senate may proceed in such circumstances by way of amendment because of the requirements of sections 53 and 56 of the Constitution. 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 am advised that the view has been taken, where there is an expansion of the purposes for which money may be drawn from a standing appropriation, section 56 of the Constitution requires that the proposed appropriation be recommended by a message from the Governor-General. I understand that such a message has been obtained in this case.

If the House wishes to entertain the proposal reflected in the Senate’s proposed amendment, the House may choose to proceed by alternative means.

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