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Appendix 1: Glossary

• General
• Canada
• United States of America
• Germany
• Belgium
• United Kingdom
• European Union

General

Bicameral legislature

A legislative system which has two houses of parliament, referred to as the upper and lower houses. Typically, both houses are required to give their assent for legislation to be passed. In a federation, it is usual for the upper house to represent the States of the federation.

Centralisation

An increase in the power of the central government, at the expense of the regional governments.

Decentralisation

An increase in the power of regional governments, at the expense of the central government.

Federation

A nation in which sovereignty over the nation’s territory is shared between two levels of government: a central, national government and a number of regional governments. A constitution determines which powers are to be exercised by each level of government.

Goods and services tax

See Value added tax.

Head of Government

Leader of a government, usually the leader of the party with the largest representation in the lower house of the legislature.

Head of State

With the exception of the United States of America, the countries studied in this report each have a Head of State who acts as a national leader. The role of the Head of State is symbolic (a personal embodiment of the nation), procedural (overseeing major state occasions, final ratification of laws etc) and diplomatic (greeting other Heads of State and visiting dignitaries). The President of the United States is both Head of Government and Head of State.

Horizontal fiscal equalisation

Horizontal fiscal equalisation is a method of distributing funds between States. It ensures an equal capacity of each State to provide State-type public services at an average level, provided that it makes the same effort to raise revenue as the States do on average, and operates at an average level of efficiency.

Intergovernmental relations

Relations between governments. In this report, it means the relations between the two levels of government in a federation, which are necessary if governments are to deal with matters unforseen by the constitution, to determine the distribution of roles and responsibilities appropriate to the needs of the federation, and to collaborate on joint policy and common or complementary programmes.

Unicameral legislature

A legislative system in which there is only one house of parliament.

Value added tax

A form of broad-based consumption tax that is imposed on the value added at each stage of the production and distribution chain. It is also known as a Goods and Services Tax.

Vertical fiscal imbalance

A situation in which the central government in a federation raises more revenue than it expends, while the constituent governments raise less. A federation’s rate of vertical fiscal imbalance is calculated as the ratio of the federal government’s revenue (measured as a percentage of total government revenue) to its expenditure (measured as a percentage of total government expenditure). The imbalance is corrected by transfers from the central to the regional governments.

Canada

Canada Assistance Plan

Fiscal transfers from the Federal to the Provincial and Territorial Governments to fund social assistance programmes.

Canada-wide Accord on Environmental Harmonisation

A multilateral agreement between the Federal, Provincial and Territorial Governments. It clarifies the role of each level of government in environment policy and allows for further, more specific agreements to be reached on particular issues of environment policy.

Canadian Intergovernmental Affairs Secretariat

An independent body which provides secretarial and logistical support to intergovernmental meetings. Its services are available for both Federal-Provincial-Territorial meetings and Provincial-Territorial level meetings.

Charlottetown Accord (1992)

The Accord, which was supported by the Prime Minister, provided for a reformed Senate and changes to the division of legislative powers between the Federal and Provincial Governments. It also supported the right of Canada’s Aboriginal people to inherent self-government, and recognised Québec as a distinct society. The Accord was defeated in a national referendum.

Commonwealth of Nations

An association of 54 countries which have historically been members of the British Empire. Queen Elizabeth II is accepted by all members (including republican governments) as the symbol of their free association and thus Head of the Commonwealth.

Confederation (1867)

The coming together of the Canadian federation. The term confederation was used in recognition of the strong position of the Provinces within the federation.

Democratic deficit

Used to described decision-making processes which are not transparent and which are not directly accountable to parliament.

Equalisation

Federal transfers to the poorest Provinces and Territories to enable them to maintain a certain standard of government services. The amount of money transferred is according to a "Five Province Standard" which is a population-weighted average of British Columbia, Manitoba, Ontario, Québec and Saskatchewan spending.

Established Programmes Funding

Fiscal transfers from the Federal to the Provincial and Territorial Governments to support health care and post-secondary education.

First Ministers’ Conference

A meeting of the Prime Minister and the Premiers of the Provinces and Territories.

Flat tax

A tax which is applied at an equal rate on all tax payers, regardless of their income tax bracket.

Framework Agreement on Social Union

A multilateral agreement between the Federal, Provincial and Territorial Governments. It outlines common social policy principles, the use of the federal spending power in social policy, and provides guidelines for joint planning and collaboration between governments.

Harmonised Sales Tax

A consumption tax which incorporates the federal Goods and Services Tax and a Provincial Sales Tax.

House of Commons

The lower house of the Canadian federal legislature.

Intergovernmental agreement

An agreement between governments, whether a Federal-Provincial or Province-to-Province agreement.

Inuit

Indigenous peoples of northern Canada.

Labour Market Development Agreements

A multilateral agreement between Federal, Provincial and Territorial Governments. The purpose of these agreements is to provide the Provinces and Territories with flexibility in strengthening labour markets and reducing duplication of services.

Meech Lake Accord (1987)

The Accord sought to resolve the constitutional issues surrounding the ‘distinct society’ of Québec. The conditions centred on provincial participation in the appointment of Supreme Court judges and senators, the Constitution’s amending formula, increased powers for the Provinces in immigration matters, some reduction in federal spending powers, and a constitutional declaration that Québec is a ‘distinct society’. The Accord failed to gain the legislative consent then required to amend the Constitution.

Ministerial Council

A meeting of Provincial Ministers in a particular policy area, eg. the Ministerial Council on Social Policy.

National Child Benefit Scheme

A partnership between Federal, Provincial and Territorial Governments to provide assistance to low-income families.

Piggy-back taxation

The system whereby the Provinces and Territories can set their rates of personal income tax as a percentage of federal income tax payable, and are able to access the Federal Government’s administrative capacity to collect these provincial and territorial personal income taxes. This is secured through a Tax Collection Agreement.

Plebiscite

A vote by which the people of an entire country or district express an opinion for or against a legislative or constitutional proposal.

Premier

Leader of a Provincial or Territorial Government.

Premiers’ Conference

Meeting of the Premiers of the Provinces and Territories.

Prime Minister

Leader of the Federal Government.

Privy Council

This serves as the secretariat to the Cabinet of the Federal Government and provides policy advice to the Prime Minister.

Province

The Canadian term for a State in the Canadian federation.

Provincial Sales Tax

A retail sales tax which applies to the sale of goods (and some services) within a particular Province. When such a tax is harmonised with the federal Goods and Services Tax, the two together are known as a Harmonised Sales Tax.

Québec Sales Tax

A consumption tax which applies to goods and services within Québec. It is harmonised with the federal Goods and Services Tax.

Renewing the Federation

A Federal Government initiative to increase the effectiveness and efficiency of the Canadian federation, without constitutional reform.

Responsible government

Government on the Westminster model, with the executive sitting in the parliament, and governing only so long as it commands the confidence of the lower house of the parliament.

Revenue Canada

Soon to be transformed into Canada Customs and Revenue Agency, it is the Federal Government’s tax collection department.

Senate

The term given to the upper house of the Canadian federal legislature.

Surtax

A tax, expressed as a percentage of the income tax payable, which is imposed as a deficit reduction measure.

Tax Collection Agreement

An agreement between Provincial or Territorial Governments and the Federal Government, which allows a federal agency to collect provincial and territorial taxes on their behalf.

Territory

An area under federal government rule granted self-government, similar to a Province. Territories are more sparsely populated, more reliant on Federal Government funding and have a lower degree of representation in the federal legislature than provinces.

United States of America

Articles of Confederation (1781)

The Articles of Confederation established the United States of America after the War of Independence with Great Britain. They established a confederal government with extremely limited national powers.

Bill of Rights (1791)

The Bill of Rights was the first set of amendments to the Constitution of the United States of America. The Bill of Rights secured constitutional protection of individual rights.

Block grant

These are federal funds transferred to the States for a certain policy area (eg. health). States are directed to expend these funds in the nominated policy area and according to broad federal guidelines. Block grants give the States greater discretion in the use of federal funds by imposing fewer and less stringent conditions.

Declaration of Independence (1776)

The Declaration of Independence was made by the original thirteen colonies which were to become the founding States of the United States of America. The Declaration was made during the War of Independence with Great Britain.

Devolution

The process by which responsibility for government functions is transferred from the Federal Government to the State governments. This report is concerned with the extent to which the Federal Government has transferred effective decision making authority to the States in policy areas where the Federal Government has been dominant.

First Continental Congress (1774)

This Congress convened the thirteen colonies to draw up a declaration of rights and grievances to the British Imperial government, with the aim of reforming colonial governance.

Gubernatorial

Relating to the office or powers of a State Governor.

House of Representatives

The lower house of the United States federal legislature.

Impeachment

The process by which the President of the United States, and other public office holders, may be removed from office. Impeachment must be for treason, bribery or a "high crime or misdemeanour".

Intergovernmental grant

A grant of funds from the Federal Government to State Government. Such grants usually have conditions attached to them, requiring State Governments to adopt federally approved programmes or administrative procedures in order to receive these grants. See also block grant.

New Federalism

Both the Nixon and Reagan Administrations introduced a programme of ‘New Federalism’ which sought to re-balance the powers of Federal and State Governments. They did this through consolidating a number of federal programmes in one area (eg. public transport) into a block grant, which had fewer federal conditions attached to it.

Reinventing Government

President Bill Clinton launched a wide- ranging initiative to change Federal-State relations and make Federal Government less expensive and more efficient. It has addressed unfunded mandates, intergovernmental service delivery, the use of federal regulations and block grants.

Secretary (in Cabinet)

A Secretary is the equivalent to an Australian federal Minister. However, a Secretary is not drawn from the legislature, but is selected by the President from outside the legislature.

Senate

The upper house of the United States federal legislature.

Separation of powers

A system of government in which the three branches of government - executive, legislative, and judicial - exercise their powers and functions independently of the others.

Unfunded mandate

This imposes a legislative and policy burden on State Governments through the passage of federal legislation, but does not transfer federal funds to the States for the implementation of these legislative requirements.

Germany

Alliance 90/The Greens

Created in 1993 as an association between East German civil rights movements (Alliance 90) and the West German ecological party (The Greens). It advocates radical social and ecological reform.

Basic Law

The constitution of the Federal Republic of Germany. It is symbolically called the Basic Law because, at the time of its adoption in 1949, Germany was divided into East and West. The framers of the Basic Law decided that only upon unification and with the consent of the German people could the Basic Law become known as the constitution.

Blocks (Länder)

This refers to the pattern of voting in the Bundesrat. The Länder have more than one delegate to the Bundesrat and each delegate from the same Länder must vote in the same manner. This is known as casting a block vote.

Bund

The term for the federal government in the German federation.

Bundesbank

The central bank of Germany.

Bundesrat

The upper house of the German federal legislature.

Bundesstaat

This level of intergovernmental relations occurs between the Bund and Land governments in intergovernmental institutions which are constitutionally based and decision-making is by majority vote.

Bundestag

The lower house of the German federal legislature.

Chancellor

Formally nominated by the President and endorsed by the Bundestag as the head of the Federal Government. The Chancellor is usually the leader of the political party with the largest representation in the Bundestag.

Christian Democratic Union

A bi-confessional party, drawing support from both Catholic and Protestant voters, which has a centre-right, pro-welfare political programme.

Christian Social Union

The Bavarian sister party of the Christian Democratic Union.

Constitutional Court

This Court has sole jurisdiction in constitutional matters and is the highest court of appeal in public law. It does not have a general criminal and civil law jurisdiction.

Financial internationalisation

A process by which the operation and regulation of financial markets is increasingly managed on an international scale, rather than confined to national markets.

Free Democratic Party

The German liberal party. It espouses a centrist-right programme and has been a coalition partner with both Christian Democratic Union and Social Democratic Party governments.

German Democratic Republic

The former East Germany. Its five Länder acceded to the Federal Republic of Germany (West Germany) in 1990. See also Unification Treaty.

German Unity Fund

A part of the temporary financial arrangements contained in the Unification Treaty. The Fund managed transfer payments from the western Länder to the eastern Länder for the reconstruction of the former East German economy.

Gesamtstaat

This level of intergovernmental relations occurs between the Bund and Länder where both are represented on an equal basis. Decisions must be taken by consensus.

Inter-Land co-operation

See Third Level.

Inter-Land transfer system

A system of payments between the Länder to assist in the achievement of the constitutional requirement for equalisation of living conditions across the Länder. It is Germany’s form of Horizontal Fiscal Equalisation.

Joint Task

These Tasks are an agreement between the Bund and all or some of the Länder. They occur only in areas of Land jurisdiction, but where the Land has only a limited ability to perform that function effectively and without prejudice to other Länder.

Land

The German term for a state in the German federation. The plural is ‘Länder’.

Minister-President

The head of a Land Government (equivalent to the Premier of an Australian State).

Mission

The official representation of a Land Government to the Federal Government. It is located in the federal capital and supports the work of Land delegates to the Bundesrat.

Municipality

The level of local government in the German federation.

Party of Democratic Socialism

The former Communist Party of East Germany. With the collapse of the Communist regime and unification, the Communist Party reformed some of its policies and adopted a change of name.

Permanent Advisory Council

This Council is attached to the Bundesrat and is composed of the Plenipotentiaries of the Länder governments. It manages the political work of the Bundesrat.

Plenipotentiary

The head of the Land delegation to the Bundesrat. The Plenipotentiary also heads the Land Mission to the Bund.

President

The German Head of State. The President’s role is a largely ceremonial one, with most actions concerning the Federal Government requiring the Chancellor’s countersignature.

Regulatory harmonisation

The harmonisation of Bund and Länder regulation of the German economy, to enhance the operation of a single German market. Regulatory harmonisation is achieved by the implementation of national uniform standards, or by way of mutual recognition of standards.

Secretariat of the Bundesrat

This Secretariat supports the work of the select committees of the Bundesrat, who make recommendations to the Bundesrat regarding proposed legislation.

Social Democratic Party

A centrist-left party which has a commitment to the welfare state and egalitarianism.

Solidarity Pact

An agreement between the Bund and all of the Länder which deals with financial arrangements for the incorporation of the five former East German Länder into the federation. It was signed in 1995.

Solidarity Surcharge

In order to cope with the cost of re-unification, the Bund has imposed a surcharge on personal and corporate income tax. A date has yet to be fixed for its abolition.

Third Level

This level of intergovernmental relations involves only the Länder. It involves inter-Land co-operation and co-ordination.

Trade tax

A personal and corporate income tax levied by municipal councils in Germany.

Treaty of Merger

Designed to effect the merger of the Berlin and Brandenburg Länder, it was defeated in popular referenda in 1995.

Turnover tax

A tax that is levied as a proportion of the price of a commodity at each stage of the production and distribution chain. In Germany, turnover tax is a general term referring to both Value added tax and taxes on import turnover.

Unification Treaty (1990)

This formally acknowledged the re-unification of West and East Germany after the fall of the Berlin Wall and the collapse of the Communist regime in East Germany.

Weimar constitution

The democratic constitution of the Weimar Republic which governed Germany between 1919 and 1933.

Belgium

Chamber of Deputies

The lower house of the Belgian federal legislature.

Christian People’s Party

A Flemish centre-right party supporting the welfare state and individual freedoms.

Community Councils

Each governs its respective linguistic community (French-, Flemish-, or German-speaking) and has responsibility for social, cultural, health and education affairs. These Councils are not territorially defined, their jurisdiction applying wherever there are French-, Flemish- or German-speaking communities.

Court of Arbitration

Its role is to resolve jurisdictional conflicts arising from Belgium’s complex federal arrangement.

Cultural Councils

Formed during an earlier stage of Belgian constitutional reform. They can be considered precursors of the Community Councils.

Flemish

The Flemish are a distinct ethnic community within Belgium. They are geographically concentrated in the north of the country, known as Flanders. The Flemish are linguistically and culturally Dutch.

Flemish Parliament

The result of a merger between the Flemish Community Council and Flemish Regional Government.

Greens Party

There are two green political parties in Belgium arguing for radical ecological and social reform. The Flemish party is Agalev and the French party is Ecolo.

Flemish Liberal Democrat Party

A conservative liberal party founded in 1992, replacing the Party for Freedom and Progress.

Liberal Reformation Party

A French right wing party which emphasises individual rights. Previously marked by strong anti-clericalism, this tendency has declined in the 1990s.

National Front

A French ultra right-wing nationalist party.

Regional government

The Belgian term for a state in the Belgian federation.

Senate

The upper house of the Belgian federal legislature.

Social Christian Party

A French centre-right party with a pro-welfare and individual rights platform similar to the Christian People’s Party.

Socialist Party

There are both French and Flemish socialist parties. Each espouses a left-wing political programme, supporting the welfare state and social democracy.

Vlaams Blok

A Flemish ultra right-wing nationalist party formed in 1979 with the merger of the Flemish Nationalist Party and the Flemish People’s Party. It advocates an independent Flanders and withdrawal from the European Union.

Walloon

The Walloons are a distinct ethnic community within Belgium. They are geographically concentrated in the south of the country, known as Wallonia. The Walloons are linguistically and culturally French.

United Kingdom

Barnett formula

The formula which determines, according to a ratio of population to public spending, the amount of funding which Scotland and Wales receive from the Government of the United Kingdom.

Constitutional monarchy

A form of government whereby a monarch holds power limited by a constitution. Political power is vested in elected officials and the monarch’s duties are largely ceremonial.

Devolution

The establishment of limited self-government in Scotland and Wales.

House of Commons

The lower house of the Parliament of the United Kingdom.

House of Lords

The upper house of the Parliament of the United Kingdom. It is (currently) an unelected upper house, its Members appointed for life by the Government or through hereditary right.

Scottish Block

This refers to the funds transferred from the Government of the United Kingdom to the Secretary of State for Scotland. It provides funding for government activity in Scotland. From 1999, the Scottish Block will be transferred to the Scottish Parliament and will be referred to as the Scottish Consolidated Fund.

Transitional chamber

The chamber which will serve as the upper house of the legislature of the United Kingdom after the dissolution of the House of Lords in its current form. The term of the transitional chamber will end when reform of the House of Lords, which will include elected members for the first time, has been finalised.

Unitary state

A nation state in which there is only one, central government.

Welsh Assembly

A popularly elected body which will have responsibility for making decisions for Wales, in areas which the Government of the United Kingdom will transfer to it.

Welsh Block

This refers to the funds transferred from the Government of the United Kingdom to the Secretary of State for Wales. This money provides funding for government activity in Wales.

European Union

College of Commissioners

An executive body of the European Union which has as its tasks the initiation of legislation, supervision and implementation of European Union programmes, and the enforcement of European Union law and the treaties which form the basis of the European Union.

Committee of Permanent Representatives

Composed of the Brussels-based ambassadors (the Permanent Representatives) of the Member States of the European Union. Its primary task is to prepare the work of the Council of Ministers.

Council of Ministers

The main executive body of the European Union. Its tasks are to take decisions for the European Union and legislate (often in conjunction with the European Parliament). The Council is composed of one representative from each of the Member States. It meets in different configurations, such as the Council of Economic and Financial Ministers, and the Council of Environment Ministers.

Court of Auditors

An institution for external control of expenditure of the European Union. It audits the institutions of the European Union, and all national, regional and local bodies which receive funding from the European Union, both in Member States and in non-member countries.

Court of First Instance

Established to ease the case load of the Court of Justice, its jurisdiction is competition law, disputes between the European Union and its staff, disputes arising from the Treaty of Paris (regarding coal and steel), and actions to annul legislation and for failure to enact legislation. Actions may be brought by the Commission or by Member States.

Court of Justice

The Court’s role is to interpret and apply the Treaties establishing the European Union and other Union texts, legislation and decisions. National courts of the Member States may apply to it for a preliminary ruling on cases pertaining to European Union law.

Economic and Social Committee

A 189-member consultative body composed of representatives from labour, consumer, employer, agriculture, environmental and professional bodies.

European Council

The Council of Ministers meeting in the form of Heads of Government and of State. The President of the Commission attends these meetings which occur on a six-monthly basis.

European Parliament

The legislature of the European Union. It has 624 directly elected members, with representation for each Member State determined approximately according to population. Members of the European Parliament sit in political groupings and not in national groups.

Region

Regions of the Member States are formally represented in the European Union (in the Committee of the Regions) and are eligible for funding from the European Union. Since the type and extent of regional government within Member States varies widely, the Commission has established definitions of regions known as the Nomenclature of Territorial Units for Statistics.

Subsidiarity

A principle which advocates that decision making ought to occur at the lowest level at which effective action can be taken.

Treaty on European Union (1992)

The result of an Intergovernmental Conference of the Member States of the European Union. It adopted institutional reforms and expanded the competencies of the European Union.