❓ Mr. Wyatt questions the WA government about the 10% 'underspend provision' in the Royalties for Regions Asset Investment Program. The government explains it's an 'over programming provision' to account for typical underspends and redirect funds to other regional programs.
AnsweredQoN 1280Legislative Assembly
QuestionView source ↗
I refer to page 182 of Budget Paper No.1 (volume 1) and the 10 per cent ‘underspend provision’ contained in the Royalties for Regions Asset Investment Program, and ask: (a) why was an underspend provision developed; (b) when did the Government make a decision about including a 10 per cent underspend provision; (c) was the underspend provision introduced as a result of advice or recommendations from the Department of Treasury or the Department of Finance: (i) if so, who provided the advice and when was it provided; and (ii) if no, who recommended the introduction of an underspend provision, and when was that advice provided; (d) of the $65.216 million underspend provision for the 2013–2014 financial year what are the individual assets and underspend allocation to each asset that makes up this total amount; (e) of the total $215.926 million underspend provision for the 2013–2014 financial year and forward estimates, what are the individual assets and underspend allocation to each asset that makes up this total amount; and (f) if the full 110 per cent allocation for each asset is not spent, what happens to the unspent monies that have not been utilised?
AnswerView source ↗
Answered
19 November 2013
Responded by
Minister for Regional Development
Response time
35 days
(a) An over programming provision was introduced in recognition of underspends which traditionally occur in large budgets that stretch across a diverse range of projects and programs. Underspends can occur because of such factors as resourcing issues, contractual delays and planning issues and is not unusual for budgets that contain many new programs. The underspend allows for 10 per cent of program budgets to be redirected to other programs, rather than sitting unspent in a bank account, so as to take advantage of opportunities in the regions.
(b) The over programming provision was introduced as part of the 2013-14 State budget process for the Royalties for Regions program.
(c) (i)-(ii) The over programming provision was jointly developed by the Department of Regional Development and the Department of Treasury during the 2013-14 budget process.
(d) - (e) No single program is reduced. Rather, a 10 per cent underspend provision is applied to the bottom line, in recognition that the total budget will not be completely spent.
(f) The budget is predicated on the 10 per cent underspend provision not being used.
(b) The over programming provision was introduced as part of the 2013-14 State budget process for the Royalties for Regions program.
(c) (i)-(ii) The over programming provision was jointly developed by the Department of Regional Development and the Department of Treasury during the 2013-14 budget process.
(d) - (e) No single program is reduced. Rather, a 10 per cent underspend provision is applied to the bottom line, in recognition that the total budget will not be completely spent.
(f) The budget is predicated on the 10 per cent underspend provision not being used.
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