Chairman's foreword
I am pleased to present the Second Report of the Federal-State Relations Committee to the Victorian Parliament.
This Second Report gives an account of relations between the States and the Commonwealth in the 1990s, and surveys the changes which have taken place in Australian federalism over this time.
The report focuses on the intergovernmental bodies - particularly the Council of Australian Governments and the Leaders' Forum - which were established in Australia during this time, and on the administrative, legislative and financial arrangements that these have produced. The microeconomic liberalisation that has been brought about has contributed significantly to the development of a single national market in Australia. However, from the broader perspective of Commonwealth-State relations, there is much that still needs to change. This is particularly true in respect of intergovernmental financial relations, and the distribution of responsibilities for taxation and expenditure.
The Committee's Third Report will build upon the findings of this report, with an analysis of the evolution of federal arrangements in other federal political systems, and the possibilities overseas trends suggest for developing Australian federalism. Our Third Report will contain recommendations for change that we believe to be achievable and in the interests of the Australian federation.
Taken together, this report and the report to follow will provide substantive answers to many of the questions posed by the Committee's Terms of Reference: what general principles ought to govern the assignment of roles and responsibilities to the Commonwealth and the States; in what areas of responsibility ought the States to have an enhanced role; what ought to be the role of the Senate; how ought federal decision-making institutions to operate; and how can Commonwealth-State financial relations be reformed, to ensure a secure revenue base for the States?
Some answers to these questions in the particular area of international treaty making were provided in our First Report, tabled in October of last year, on International Treaty Making and the Role of the States. As a result of that report Commonwealth treaty documents will now be tabled on a regular basis in the Victorian Parliament. This is an important development that will ensure State Members of Parliament remain informed of treaty developments and are able to pass on this information to their constituents.
The question of international treaty making and the role of the States remains a matter of concern to the Committee, and we are continuing to develop appropriate scrutiny procedures. Following a joint meeting with the Commonwealth Joint Standing Committee on Treaties in May of this year, the then Chair of that Committee, Mr Bill Taylor MP, wrote to all other State and Territory Parliaments, encouraging each to establish or nominate a Committee able to deal with treaty issues. We are hoping for significant results to follow from this ongoing inter-parliamentary liaison.
The Federal-State Relations Committee is also working on a detailed report into the nature and extent of Commonwealth Specific Purpose Payments to Victoria. This will provide concrete information on this aspect of Australia's federal financial arrangements, and the implications of Specific Purpose Payments for overlap and duplication of State and Commonwealth activity.
In carrying out our investigations we have been fortunate to meet with some of the leading individuals involved in Australian intergovernmental relations during the 1990s. All gave vivid accounts of their involvement in the developments documented in this report. I believe that the Committee's report reflects our engagement with those who were involved at the highest level, and the diversity of opinions they expressed. We are particularly grateful to the former Prime Minister The Honourable Bob Hawke, former Premiers The Honourable Nick Greiner, The Honourable Wayne Goss and The Honourable John Bannon, and former Deputy Prime Minister The Honourable Brian Howe for giving generously of their time. We would also like to thank senior officials who were involved at the State level throughout the 1990s and who spoke to the Committee, including Mr Ken Baxter, Mr Gary Sturgess and Mr Glyn Davis.
Leading Australian academics, lawyers, government representatives and business people have also contributed to the Committee's investigations. Professor Brian Galligan and Professor Cheryl Saunders in particular have both long been engaged in an examination of Australia's federal system, and the Committee is grateful to them for sharing their insights with us since the inception of our Inquiry.
The Committee has received immense co-operation in 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 also like to thank our parliamentary colleagues in Victoria, Canberra, interstate and overseas for their interest in our Inquiry and for their encouragement.
I would like to thank the staff of the Committee for their commitment to the work of the Committee and for their efforts in the preparation of this report - the Executive Officer, Lilian Topic; the Office Manager, Nicole Papal; the Research Officers, Patrick Emerton and Sean Baker; and also Doug Brown, who provided research to the Committee on a consultancy basis.
Finally, I would like to acknowledge the work of my colleagues on the Committee, who remain committed to the Committee's work in dealing with and reporting upon a wide and complex reference.
If a federal system is to deliver the best for its citizens, relations between the States and the Commonwealth must be effective, both in process and in outcomes. By presenting an account of recent developments in Australian intergovernmental relations, I believe that this report will stimulate debate and suggest possibilities for the further development of Commonwealth-State relations in Australia. I therefore commend the report to the Parliament and to the Premier. The Committee is planning a seminar for early 1999 to further discuss both the issues raised in this report, and those issues which remain to be considered, and is looking forward to receiving feedback on the findings of this report prior to that time. The views of the Government, of the Parliament and of others who are interested in the enhancement of intergovernmental relations in Australia will certainly assist the Committee in settling upon the recommendations it intends to make in its Third Report.
Michael John
Chairman
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