Queensland Bills Explanatory Notes

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FINANCIAL AGREEMENT BILL 1994

                                     1
                            Financial Agreement


    FINANCIAL AGREEMENT BILL 1994

                       EXPLANATORY NOTE

GENERAL OUTLINE


Objectives of the Legislation
  The primary objective of the Bill is to give legislative effect to the recent
amendments made to the Financial Agreement by the Commonwealth,
States and Territories.
   The secondary objective of the Bill is to give the Treasurer the express
legislative authority to borrow on behalf of the State.


Reasons for the Bill
  The Commonwealth and the States have agreed that amendments to the
Financial Agreement would be effected through the enactment of
complementary Commonwealth and State legislation. These amendments
do not take effect until the legislation is enacted in all jurisdictions.
  The amendments being made to the Financial Administration and Audit
Act 1977 are also necessary, because the amendments to the Financial
Agreement effectively remove the power of the Treasurer to borrow on
behalf of the State. Accordingly, there is a need for the Treasurer to be given
express legislative authority to borrow on behalf of the State.


Estimated Cost for Government Implementation
  There will be no cost for Government arising from this Bill.


Consultation
  This legislation has been the subject of consultation involving the
Commonwealth and all States and Territories.
 
 
                                      2
                             Financial Agreement


                    PART 1--PRELIMINARY

  Clause 1 specifies the short title.
  Clause 2 provides for the commencement of Sections 7 and 10 of the
Act.



       PART 2--APPROVAL OF 1994 FINANCIAL
                  AGREEMENT

  Clause 3 provides for the approval of the signed 1994 Financial
Agreement which is set out in the Schedule.



       PART 3--AMENDMENT OF FINANCIAL
       ADMINISTRATION AND AUDIT ACT 1977

   Clause 4 provides for the Financial Administration and Audit Act 1977
to be amended by Part 3.
   Clause 5 amends the definition of "Financial Agreement" to account for
the 1994 Financial Agreement and amends the definition of "public debt" to
reflect the definition in the 1994 Financial Agreement.
  Clause 6 inserts section 19 so that the Treasurer's approval is not
required when the net credit balance of all bank accounts of the public
accounts is unintentionally overdrawn.
  Clause 7 provides for the Treasurer's Annual Statement to report on the
Debt Retirement Reserve Trust Account in lieu of the National Debt
Sinking Fund which is replaced by the 1994 Financial Agreement.
   Clause 8 inserts section 40A to give the Treasurer the authority to
borrow on behalf of the State. Authority for the Treasurer to borrow was
contained in the previous Financial Agreements but has been omitted from
the 1994 Financial Agreement.
 
 
                                    3
                           Financial Agreement


  Clause 9 amends section 109 by adding the new section 40A
(Treasurer's borrowing powers) to the list of sections under which the
Treasurer may delegate his power.




                        PART 4--REPEALS

  Clause 10 provides for the repeal of previous legislation relating to the
Financial Agreement.




                         © The State of Queensland 1994

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