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July 06, 2006
A new federalism is back on the agenda in the form of Peter Costello, the federal Treasurer, recently calling for greater commonwealth control over areas of national economic significance---ports, electricity, gas and water. The proposal by the Treasurer is for the federal government to take overall control of running the economy whilst the states deliver services.
This has more in common with Whiltam's new federalism in the 1970s, which was about greater centralization of commonwealth state relations, than Malcom Fraser's, which restored the autonomy of the states. Costello's 'new federalism' has little to do with the Hawke/Keating 'new federalism', which was about reforming the economy through consensus-driven CoAG collaboration. Costello has succeeded in antagonising the states with his rhetoric about bad states versus good commonwealth.
The states are quick to point out the inefficiencies in the way the commonwealth regulates interstate gas, telecomunication and electricity assets and markets. The states have shown little interest in handing their powers over nationally important assets to the commonwealth and any referendum designed to wrest such powers from the states would most certainly fail.
CoAG is the place where the changes to, and reform of, the Federal compact is negotiated. If Costello is right that Peter Costello is right, Australian federalism does need an overhaul change will evolve through give and take between the Commonwealth and the states, not just more power for Canberra, which is Costello's position.
In an op ed in The Sydney Morning Herald George Williams argues that change is required and that we need to revisit Australian federalism.:
Our federal system was conceived in the 1890s, the age of the horse and buggy, and it shows. It was thought then by the drafters of our constitution, themselves mainly state politicians, that the new nation would best be served by six strong state governments with some co-ordination by a weaker federal government.This vision has unravelled. Two world wars have demonstrated the need for national leadership and control over many parts of our daily life. Australia's integration into the global economy has also shown that we need national laws that help us compete against other countries, and not just state against state. Instead of holding a referendum to recast our constitution, the real work to adapt our system of government has been undertaken by the High Court. Its interpretation of the constitution has generally favoured the Commonwealth. The states, over a century, have been transformed from dominant players to dependent upon handouts and to exercising control over areas the Commonwealth has thus far left alone.
This has resulted in , buck passing, political conflict rather than clear lines of responsibility, problems in infrastructure, education and health being neglected as being the responsibility of someone else, and expensive solutions.
Williams says that the reform agenda should deal with two big issues.
First, we need to ask again who should have the power, and the responsibility, over major areas of policy. Second, we need to fix the financial arrangements that have left the states so dependent on federal grants.
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Quoting George Williams; Two world wars have demonstrated the need for national leadership and control over many parts of our daily life.
Garbage. The weakness in our system is the constitution and a desire from Canberra for ever increasing centralism. The High Court has aided and abetted them.
The majority of the referendums that have been rejected have been overtly centralist, yet despite this rejection, we have bigger and badder Canberriffic government than ever.
A national government is obnly supposed to deal with issues of international and intra-state affairs. The socialists, statists, nationalists, conservatives and good ol' Canberra boys have decided everything is 'national' interest.
Williams probably need to be reminded there was a time in 1932 that civil war between Canberra and NSW was an angel's breath from occuring.
Arguably the State Debts referendum precipitated it as there was a confluence of interests and mixing of fed/state powers.
This harkens back to a poor constitution that doesnt split powers and responsibilities cleanly. Henry Higgins (IIRC) called the constitution a 'horse and buggy' one. Botsman continued that. It is ironic to see Williams use similar language.
Simply put, the Australian Constitution is craptastic and the holes in it have meant the Canberra politicians can manouvre for increased centralism outside of referendums.
They have been successful. The five major parties in Australian federal and state politics have policies of either abolishing the states or making them vassal to the feds.