Chairman's foreword
I am pleased to present the Third Report of the Federal-State Relations Committee to the Victorian Parliament. At its inception in 1996, the Federal-State Relations Committee was directed to undertake a very broad inquiry into federal-state relations in Australia. To fulfil every part of our Terms of Reference might have meant nothing short of a rewrite of the Commonwealth Constitution. What we have therefore attempted to do is to focus on particular areas where we have been able to offer constructive solutions.
In our Second Report, which examined changes in Australian federalism during the 1990s, the Committee found that there is much that still needs to change in Australian federalism. This report builds on the Second by adding to it an understanding of the operation of other federal systems.
There is not a political system that exists which will not need to deal with interdependence: internally, state and federal governments must work together; internationally, countries must work with other countries in the face of increasing globalisation. In Canada, the United States, Germany, Belgium, the European Union and the United Kingdom governments have responded to these challenges with impressive and sophisticated formal intergovernmental decision-making institutions. The Committee was fortunate to be able to meet with those involved in federal-state and inter-state relations at the highest level in Canada, the United States, Germany, Belgium and the European Union. We were also given an account of the forthcoming devolution arrangements for Scotland.
In considering these other federal and quasi-federal systems, and comparing them to Australia, the Committee observed a trend towards highly sophisticated mechanisms of intergovernmental relations, from which Australia certainly can learn. The many insights that we gained from these meetings, adapted to the Australian context, have resulted in recommendations for the enhancement of federal decision-making institutions and the policy-making role of the States, as well as for reform of the Senate and of federal financial relations. These recommendations, if implemented, would significantly improve the functioning of Australia’s federal system.
The Committee has received immense co-operation and enthusiasm for this Inquiry, and I would like to thank all of those who have appeared before the Committee since its inception. I would particularly like to thank the many Ministers, Members of Parliament, senior officials, business people, academics and others with whom we met during our investigations overseas, both for the information and insights into their own systems which they freely shared, and for their warm hospitality. Too many stand out to be mentioned here, and all are noted in the Appendix to this report. These meetings added to our already rich experience in Australia, which has included meetings with some of the leading individuals involved in Australian intergovernmental relations during the 1990s, as well as leading Australian academics, lawyers, government representatives and business people.
I would like to thank the staff of the Committee for their ongoing dedication to the work of the Committee and for their excellent work towards this report: the Executive Officer, Lilian Topic; the Office Manager, Nicole Papal; the Research Officers, Patrick Emerton and Iona Annett.
Finally, I would like to acknowledge the work of my colleagues on the Committee. We have spent many hours discussing the complex issues that have been raised by this inquiry, and this report reflects their commitment to the work of the Committee.
For a federal system to function smoothly, it must incorporate a mature approach to intergovernmental decision-making so that governments can work together to deliver the best for their citizens. I believe that this report offers strong recommendations for the further development of Commonwealth-State relations in Australia. I trust that my parliamentary colleagues in Victoria and throughout Australia will take an interest in this report. I commend the report to the Parliament and to the Premier.
Michael John
Chairman
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