This also indicates that the members of the Executive had breached section 26 of the Financial Management and Accountability Act. They may be guilty of an offence, but there is now no penalty. Phew!
But a big problem remained. Not only was the NSCSWP, and related contracts for funding invalid. The Government was faced with more than 400 other funding agreements that were now potentially invalid. Billions of dollars were at stake. Some contracts had been undertaken to fund agreements to commence within a few days of the Court's decision. The Government has sought to remedy its legally dubious situation by rushing through the Financial Framework Legislation Amendment Act 2012, purporting to provide the necessary authority for appropriate funding under the Constitution.
However, the Act may well not save the Government. It lists in regulations over 400 general matters ('heads) for which the relevant Minister or delegated officer can make, amend or cancel funding arrangements by simply tabling a further regulation, thus by-passing proper accountability and debate. These heads include assisting business, community infra structure, 'student resilience and wellbeing', 'the provision of entitlements to the current and former Prime Ministers', 'political party secretariat training', 'domestic policy' and 'regional development'. The way is open for pork-barrelling and vote-buying.
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The Government has shown little respect for the High Court's message about proper appropriation, Parliamentary scrutiny, and the Constitutional division of federal/state powers. Instead Parliament gave full authority to the Executive to spend money on whatever it wants without the need for adequate parliamentary scrutiny. (See, e.g. Professor Anne Twomey, Parliament's abject surrender to the Executive) .
This time the Government aimed for a 'get-out-of-trouble-free' card, but may have overplayed its hand. It is ripe for another High Court Challenge. Well, Ron Williams is seeking legal advice with that view in mind. Watch this space.
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