The Committee recommends that the responsibilities of the Commonwealth and State Governments and Parliaments be distributed so as to uphold the virtues of federalism, identified in Findings 1 and 14 of the Committee’s Second Report. These virtues are:
decentralised decision-making which permits diverse responses to regional needs;
a competitive environment for public policy solutions;
multiple points of access to government for citizens;
unity where necessary, without central domination.
Paragraph 7.3
Recognising the powers granted by State Constitutions and the
Australian Constitution, the Committee recommends that the States be free to
make their own policy decisions unless there is an overriding national
imperative for a single policy for the whole of Australia.
Paragraph 8.11
The Committee recommends that national policy decisions be made in a way which maximises the possibility of interests within States being:
represented in the decision-making process; and
satisfied by the decisions reached.
This requires the participation of State Governments to
represent those interests particular to their States.
Paragraph 8.12
Where there is an overriding imperative for national policy
making, but there is no distinct national interest, other than an interest in
the convenience and efficiency of uniform policy, the Committee recommends that
the decision be made jointly by the States.
Paragraph 8.16
The Committee recommends that the States participate in national
policy making unless no distinct State interests exist in the policy area. In
those few policy areas in which there are no distinct State interests, the
Commonwealth alone should have responsibility for national policy making.
Paragraph 8.18
Where an overriding imperative makes it necessary to make a
national policy decision, and where there are relevant differences of State
interest, as well as a distinct national interest, the Committee recommends that
the States and the Commonwealth should make the policy decision co-operatively.
Paragraph 8.19
The Committee recommends that the administration of policy, as
well as responsibility for determining policy, be distributed between the State
and Commonwealth Governments so as to uphold the virtues of federalism.
Paragraph 8.22
The Committee recommends that, where there is an overriding
imperative for national policy making, but a nationally uniform system of
administration or implementation is not essential to the policy, then
responsibility for implementing the national policy ought to reside with
distinct State administrations, responsive to State interests.
Paragraph 8.22
The Committee recommends that, in cases where there exists an
overriding imperative for a national uniform system of administration in a
policy area, but there is no overriding imperative for national policy, then
where feasible provision ought to be made for a single administrative agency to
implement the distinct policies of the various States.
Paragraph 8.22
The Committee recommends that intergovernmental institutions be
the principal site of co-operation between the Commonwealth and the States. It
is also in intergovernmental institutions that inter-State co-operation must
take place.
The Victorian Government should therefore pursue the enhancement
of Commonwealth-State Relations in Australia through the use and development of
existing Australian intergovernmental bodies and institutions. The Council of
Australian Governments should be developed as the principal site of
Commonwealth-State co-operation. At the same time, the Leaders’ Forum should
be developed as the principal site for inter-State co-operation.
Paragraph 9.17
The Committee recommends that decisions concerning:
the need for and scope of national decision-making;
the existence of distinct State and national interests;
the process (either inter-State, Commonwealth or Commonwealth-State) of national decision-making in particular policy areas; and
the implementation of national policy;
be made co-operatively by Commonwealth and State Heads of
Government. Such decisions should take place in enduring and robust
intergovernmental institutions, which permit both the States and the
Commonwealth to fully participate, and which enable these decisions to be
reviewed on an ongoing basis.
Paragraph 9.20
The Committee recommends that the Victorian Government pursue
the principles stated in Recommendations 1 to 9 in the Council of Australian
Governments and the Leaders’ Forum.
Paragraph 9.20
The Committee recommends that meetings of the Council of
Australian Governments be mandated. The mandate should take the following form:
the Council of Australian Governments shall meet at least once in each year;
in addition, the Council of Australian Governments shall meet if the Prime Minister requests a meeting;
in addition, the Council of Australia Governments shall meet if at least four Premiers or Chief Ministers request a meeting.
Paragraph 9.30
The Committee recommends the creation of a permanent
Intergovernmental Secretariat to provide administrative and policy support to
the Council of Australian Governments.
Paragraph 9.33
The Committee recommends that Victoria, in co-operation with the other States, take steps to establish a States-based Intergovernmental Secretariat. Such a Secretariat would strengthen the position of the States in intergovernmental negotiations by:
providing administrative and policy support for Leaders’ Forum meetings;
facilitating the flow of information on intergovernmental issues to the community, to the media and to State Parliaments.
If such a Secretariat were located in Canberra, it would also:
provide support to members of State Governments and State Parliaments engaged in business in Canberra; and
maintain links between the States and Commonwealth departments and agencies, the national press gallery and other national institutions based in Canberra.
Paragraph 9.37
The Committee recommends that responsibility for leading the
Secretariat, and for chairing the meetings of the Leaders’ Forum, rotate on a
regular basis among the State Heads of Government.
Paragraph 9.38
The Committee recommends that, where an enhanced
intergovernmental relations process necessitates additional political work, it
is desirable that a Minister be given responsibility for intergovernmental
relations.
Paragraph 9.40
The Committee recommends that intergovernmental relations in
Australia involve both the Executive Governments, and the Parliaments, of the
Commonwealth and the States.
Paragraph 9.42
The Committee recommends that, following each meeting of any
executive intergovernmental body, a report of the meeting be transmitted to the
Parliament of each State participating in the meeting, and to the Commonwealth
Parliament if the Commonwealth participated in the meeting, to be tabled at the
earliest opportunity.
Paragraph 9.44
Several schemes of uniform legislation operating in Australia
give executive intergovernmental bodies the power to legislate and to regulate.
The Committee recommends that, in those cases in which executive
intergovernmental bodies have law-making powers, that law-making decisions be
taken in an open meeting which the public may attend, and a record kept and
transmitted with the report mentioned in Recommendation 19, so that Parliaments
are kept informed of the laws that govern their jurisdiction.
Paragraph 9.45
The Committee recommends the creation of an Inter-Parliamentary
Committee for Intergovernmental and Federal Affairs.
The Inter-Parliamentary Committee should be established by way
of uniform legislation passed in each jurisdiction, so as to reflect the federal
nature of the Committee, and to ensure the Committee the necessary standing in
each jurisdiction to carry out its work.
To ensure bipartisan membership, membership of the
Inter-Parliamentary Committee should consist of one Government and one
Opposition Member from each Australian Parliament.
The role of the Committee would be to inquire into and report to
all Australian Parliaments on any matter concerning relations between the
Commonwealth and the States, and the distribution of legislative and
administrative responsibilities between them, including any intergovernmental
decision-making.
Paragraph 9.48
The Committee recommends a Senate Committee for
Intergovernmental Affairs as one way of enhancing communication between the
Senate and State Governments, and thereby increasing the Senate’s
responsiveness, when legislating, to interests particular to individual States.
Paragraph 10.16
The Committee recommends that Senators be given the right to
present and report to the Parliament of their State on a regular basis, and to
answer questions, on matters of concern to their State.
Paragraph 10.18
The Committee recommends that change to the Senate is necessary
for it to more effectively represent State interests in the Australian
federation. Change should take place following extensive community consideration
of the issues involved.
If the Senate is to play its role as a federal upper chamber,
the following matters must be resolved:
the relationship between the Senate and the Commonwealth Executive;
the relationship between the Senate and State Executives;
the relationship between the Senate and State Parliaments;
the method of selecting Senators; and
the need for a Commonwealth House of review.
Other federations provide models which ought to be considered:
the German Bundesrat, in which Länder Governments sit as federal legislators;
the Belgian Senate, in which a number of Senators are appointed by Community Councils; and
the Senate of the United States of America, in which there is no executive representation.
Paragraph 10.29
The Federal-State Relations Committee recommends that the Victorian Government pursue the further reform of Commonwealth-State financial relations, either through:
enshrining in the Constitution the participation of the States in decisions concerning revenue-sharing; or,
a reduction by the Commonwealth of its rates of personal income tax and Financial Assistance Grants to the States, allowing the States to maintain their level of revenue by levying a tax on personal income, either along the lines of the Canadian system of piggy-back taxation or as a flat rate of taxable income.
Paragraph 11.47
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