Arthur Sinodinos (NSW, Liberal Party, Cabinet Secretary) Share this | Hansard source

Senator Leyonhjelm's second reading amendment expresses a view that funding for the Cities and Built Environment Taskforce has been inappropriately included in an odd-numbered appropriation bill, when in his view it should be in an even-numbered bill. The classification of expenditure between appropriation bills Nos 3 and 4 is fully consistent with the Senate-executive compact. The compact confirms what can be considered to be ordinary annual services of government for the purposes of section 54 of the Constitution.

The Senate-executive compact has not changed since its last update in 1999, when it was last signed off by both the Senate and the government. Over the last 17 years the compact has been applied in the same way by successive governments of different political persuasions. Senator Leyonhjelm contends that all new initiatives should be included in even-numbered bills. In fact, under the compact, even-numbered appropriation bills include only those new administered expenses which fall under new outcomes. These bills also include appropriations to the states and non-operating appropriations.

In 1999 the then finance minister, John Fahey, explained in a letter to the Senate the rationale for why new administered expenses which fall within existing outcomes should be included in odd-numbered bills. He said this was done 'on the basis that the outcome has been previously approved by the parliament and the new funding simply represents an increase in, or an extension of, an existing outcome.' One of Senator Cormann's predecessors, finance minister Lindsay Tanner, in a letter dated 14 July 2010, advised a previous President of the Senate that there is 'no need to change the interpretation of the Senate-executive compact.'

The appropriation for the Cities and Built Environment Taskforce measure has been included in Appropriation Bill (No. 3) because this initiative is an increase in existing activity under existing outcome 1 of the Department of the Environment, and it is, therefore, part of the ordinary activities of the government. Population policy and cities have been within the responsibility of the Environment portfolio for several years. The cities task force has, therefore, been included under an outcome that already authorises other urban activities.