How often does the Government use financial veto?
Financial veto certificates are not used often. A Government will normally use its majority of votes in the House to reject proposals it does not support. The last certificate related to an amendment proposed to the Social Security (Youth Support and Work Focus) Amendment Bill on 17 July 2012.
This is the first time the Government has exercised financial veto in respect of an entire bill since the procedure’s establishment in 1996.
What does a financial veto certificate do?
While the certificate vetoes the bill the third reading debate will still go ahead on Wednesday, 6 July. The certificate means the bill cannot be read a third time and therefore cannot become law.
Why do we have financial veto certificates?
Standing Orders permit a Minister to lodge a financial veto certificate where a proposal before the House would have a more than minor impact on the Crown’s fiscal aggregates. The rule supports the Government’s responsibility for public spending initiatives. It allows the Government to veto an initiative that it considers will have an impact on its public spending plans, irrespective of the votes in the House supporting it.
Read the Standing Orders related to financial veto
The financial veto certificate must state with some particularity the nature of the impact of the bill on the fiscal aggregates and why the Government does not agree with the Bill. It is signed by a Minister responsible for the certificate, usually the Minister of Finance. The certificate may relate to the bill as a whole or parts of the bill. In this case the veto certificate applies to the whole bill.
What happens with a financial veto certificate?
The certificate is lodged by delivering it to the Clerk of the House when the bill is awaiting its third reading. That is, after the committee of the whole House has reported the bill back to the House, but before the third reading debate commences. Once delivered to the Clerk the Speaker announces to the House that the certificate has been received.
The role of the Speaker
Once delivered to the Clerk the Speaker announces to the House that the certificate has been received. The Speaker must be satisfied that the certificate states with some particularity the nature of the impact on the fiscal aggregates and states that the Government does not agree with the bill. The Speaker does not question the Government’s judgment on the impact on the fiscal aggregates and will not allow the validity of the certificate to be challenged by point of order.