APPROPRIATION (FLOOD RELIEF) BILL 1998 Second Reading Speech

Northern Territory Second Reading Speeches

APPROPRIATION (FLOOD RELIEF) BILL 1998

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

Bill presented and read a first time.

Mr REED (Treasurer): Madam Speaker, I move that the bill be now read a second time.

The authority to spend money from the public fund is given by the passing of annual appropriation acts. When this Assembly passed the Appropriation Act 1997-98, it could not and did not anticipate a natural disaster caused by the flooding in the Katherine and Douglas/Daly regions. Expenditures for relief payments and reconstruction work will occur across many of the government's agencies and additional allocations will be required during the remainder of this year and in future years. The Appropriation Flood Relief Bill authorises the use of public money in the Territory for the recurrent and capital costs of providing relief for the people and the reconstruction of the Katherine and Douglas/Daly regions following these floods.

There will be compensation from the Commonwealth through the Natural Disaster Relief arrangements. The actual proportion paid by the Commonwealth varies as certain expenditure thresholds are achieved. However, the Commonwealth contribution is expected to average out at dollar-for-dollar with Northern Territory government expenditure. Commonwealth funds will be provided on a reimbursement basis and receipted into the consolidated revenue account. The Appropriation Bill, in increasing the allocation to Treasurer's Advance, provides a facility whereby, regardless of source and timing of funds, the government can ensure that the funds are distributed and work commenced in a timely manner by the appropriate government agencies.

At this stage, total government expenditure is estimated to be $58m, of which around $30m will be of a capital works restoration nature. The balance will be for grants and loans for businesses and individuals affected by the flood, replacement of equipment, furniture and vehicles damaged or destroyed by the floods. While the valuations are continuing on the precise extent and nature of the work to be undertaken, some relief payments and restoration moves have already been completed, and other works have been committed. At this stage, Cabinet has authorised the expenditure of $10m. The government will progressively authorise additional expenditure as the requirements are identified and quantified. I will of course provide the Assembly with a detailed statement of expenditures at the end of this financial year and at appropriate intervals thereafter.

Any expenditures incurred for the purposes outlined in this bill will be subject to the usual Cabinet considerations, budgetary practices and reported on in the usual way and be subject to the same accountability and audit requirements as any other allocation. I advise honourable members that, because of the urgent nature of this bill, I will be proposing that it be passed through all stages during these sittings. I commend the bill to honourable members.

Debate adjourned.

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