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March 28, 2008
George Williams has an op--ed in the Canberra Times on repairing Australian federalism. Rather opportune after the recent CoAG meeting that celebrated a co-operative federalism. He says:
There is a stark choice: to continue to pay extra tax for second-rate services, or to accept the challenge and opportunity of reform and fix the system of government by a proper allocation of tax revenue and a more appropriate division of power over areas of responsibility. The answer is not to abolish the Australian territories and states. That would be unrealistic and bad policy. Few local problems can be solved by unilateral action from a national government. At least one lower tier of government is needed to help develop regional solutions and deliver services.
He says that while Australia's federal system of government is broken, the answer is to fix that system, not to jettison it. We should focus on pragmatic, achievable change that lowers taxes and improves the quality of government services.
Is the federal system of governance broken? Or is it just creaky? Maybe it is in need of some repairs, as it were? A bit of tender love and care. It's not clear why the GST doesn't provide the income for the states. It doesn't come with strings attached. What is wrong with it, apart from it being not enough? No independence?
Williamsgoes on to say:
In the short term, there are many things that can be done to improve how our federal system works, like facilitating cooperation and re-examining finances. COAG has made an important start on this.In the longer term, the text of the Australian Constitution will also need to change. If the rules are not reformed, bad habits will resurface and blockages re-emerge. There is a need for a revised set of rules to accommodate the changes of the past century and to prepare for the next. This needs to be part of a new deal for Australia's federal system.
What are the new rules that are required if co-operation is working these days? Rules as to finances? What sort of rules? Increased financial independence for the states?
Williams doesn't say.
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George tells us that a lower tier of government is needed to remedy regional issues. That's the system we have now and that lower tier is advised by another tier of public servants. The time has come to dump that lower tier of government. The result would be: hospital problems...all eyes cast toward Canberra. No more of the "oh, that's a state issue or that's a federal issue" tosh we currently get.