Quoting from the official Parliamentary GPSC No.1 Media Release dated June 17th 1999:

"Legislative Council General Purpose Standing Committee No.1 is undertaking an inquiry into the current provisions for the appropriation of public monies and authorisation of expenditure, any proposals for change to financial and annual reporting legislation, and the powers of the Parliament to oversight Government expenditure.

"The Chairman of the Committee, the Revd the Hon. Fred Nile, MLC said

"The Auditor-General in his 1998 report made some strong points about this issue. He referred to the tension between Executive Government and Parliament as to how much Parliament knows and how much it is charge of approving the budget."

Included in the interests of informing the NSW public by CDP-

The issue of retrospective appropriation as discussed in Hansard:

NSW LEGISLATIVE COUNCIL - 1 June 1999 p665

[nb: Hon. M. R. Egan MLC is the NSW State Treasurer]

Rev Fred Nile MLC (CDP):...In regard to the Appropriation (1998-99 Budget Variations) Bill, this morning crossbench members had a briefing with the Auditor-General, Mr Harris, in which he answered questions. He made it very clear that he was not giving advice.

The Hon. M. R. Egan (ALP): That was disingenuous of him, pretending that he was not giving advice.

Reverend the Hon. F. J. NILE (CDP): I believe he was sincere.

The Hon. M. R. Egan (ALP): He might be sincere.

Reverend the Hon. F. J. NILE (ALP): He was seeking to answer questions without giving direction or telling the crossbench members what to do.

The Hon. M. R. Egan (ALP): He is not part of The Legislature.

Reverend the Hon. F. J. NILE (CDP): It must be legitimate for crossbench members to request an officer to brief them, give them information and answer questions. That is all we were doing. He was not there of his own volition. Crossbench members invited him, as crossbench members invited representatives of the Government, to provide further background information. I notice that the shadow treasurer indicated some concerns with this bill.

Mr Debnam said:

The Appropriation (1998-99 Budget Variations) Bill 1999 is part of abovementioned cognate legislation to validate $570 million unauthorised expenditure by Government Agencies and $3.6 billion in borrowings relating to Superannuation.

He claimed that the Government is seeking retrospective approval for more than $4 billion in spending.

The Auditor-General expressed some concern and stated that government departments must be more accurate in estimating their expenditure and should work within their budgets.

At present, if they exceed the budget they simply apply for further funds as if there was a bottomless bucket. Jokes are often made about governments and public sector expenditure. If private sector businesses fail to make a profit they go bankrupt or go out of business; if governments overspend, they just get more money.

In his 1998 report the Auditor-General made some strong points about that issue. He referred to unlawful government spending. It is the cause of much tension between Executive Government and Parliament as to how much Parliament knows and how much it is in charge of approving the budget.

In his report the Auditor-General said:

The foundation of the Westminster parliamentary system used in Australia reflects the desire of the Parliament at Westminster to control the Crown's expenditure of public moneys.

The settlement in England in the 17th century of Parliament's powers over "government" expenditure involved civil war, revolution, a republican dictatorship, and the death and despatch of kings.

This relationship between Parliament and the Government is so fundamental to parliamentary democracy that it is enshrined in Australia's and the State's constitutions. Thus section 45 of New South Wales Constitution Act 1902 says:

"The Consolidated Fund shall be subject to be appropriated to specific purposes as may be prescribed by an Act in that behalf."

This means that the one Government may not spend taxpayers' moneys unless Parliament has first given its consent.

Parliament's responsibility to hold Government accountable for spending public funds was confirmed by the Australian High Court when it declared that:

"Each transaction entered into by the Executive Government is open to criticism and if needs be, to censure by appropriate action in Parliament, even if the Government has power to carry through the transaction without express parliamentary authority. Especially is this the case where the transaction involves the payment out of public funds. Over time, however, the New South Wales Parliament's powers to control Government expenditure have been reduced.

The Christian Democratic Party and crossbench members are concerned about that. The Opposition has also expressed concern. I hope that concern will continue if and when it is in government so that there will be some consistency in the use of taxpayers' funds...

The Hon. R. S. L. JONES (IND): ...The Appropriation (1998-99 Budget Variations) Bill reveals that large sums of money have been spent during the year. I asked Treasury, via the Minister's office, about those figures.

For example, the amount of $10,123,000 is shown for the Attorney General's Department, $24,825,000 for the Ministry of Energy and Utilities, $11,925,000 for the Crown Solicitor's Office, $16,300,000 for the Health Department for motor vehicle leases, and $25,108,000 for the Premier's Department.

I asked the Minister what the figures related to. Treasury explained to me that the Attorney General's Department needed $7,200,000 of the $10,123,000 for higher than anticipated activity in the State Debt Recovery Office. ...The Ministry of Energy and Utilities used $21,982,000 of the $24,825,000. ...The Premier's Department required $20,900,000 of the $25,108,000 for further development of the new government radio network infrastructure and purchase of radio handsets. That is a lot of money. Why was it not anticipated?

I seek the leave of the House to incorporate the explanation of amounts included in the Appropriation (1998-99 Budget Variations) Bill in Hansard rather than discuss it at great length now.

Leave granted.

Explanation of Amounts Included in the Appropriation (1998-99 Budget Variations) Bill 1999 [excerpt]

Item 15 Premier’s Department