FEDERAL-STATE RELATIONS COMMITTEE
Report on
FEDERALISM AND THE ROLE OF THE STATES:
COMPARISONS AND RECOMMENDATIONS
Chapter Seven: Principles of federalism
7.0 This chapter derives several principles of federalism from the observations made in the previous chapters. These principles draw together the lessons to be learned from the comparative study of federal systems. Together with the findings contained in the Committee’s Second Report, they form the basis for the recommendations in the following chapters. The virtues of federalism7.1 In its Second Report, the Committee found that the following virtues of federalism must be upheld in Australia:1
7.2 The Federal-State Relations Committee continues to emphasise the importance of the virtues of federalism identified in its Second Report. The Committee believes that, if Australia is to function as an effective federal system, these features of the Australian federation must be strengthened, and the need to uphold and further the virtues of federalism is therefore at the core of the Committee’s recommendations. 7.3 The statement of these virtues in the Committee’s Second Report emphasises the importance of decentralised decision-making and State autonomy, and of the direct access of the citizen to multiple levels of government. Recommendation 1: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:
7.4 Recommendations 2 to 9 set forth principles for the allocation of responsibilities to the States and the Commonwealth, so as to uphold the virtues of federalism. Comparative federalism7.5 In the course of the Committee’s investigations overseas, two fundamental things became apparent. The first is that many of these other federations better uphold the virtues of federalism than does Australia. The second is that the strength of federalism in these other federations is in part attributable to certain identifiable features of their federal arrangements.7.6 This chapter will therefore set out several principles of federalism. These principles draw together the lessons to be learned from other federations, and identify those features of a federal system that are apt to uphold the virtues of federalism. This report makes its recommendations based on a recognition of these principles of federalism, and the virtues which they uphold. The understanding of the experience of other federations, expressed in the principles, is used to recommend improvements to the operation of the Australian federal system, and particularly the role of the States in the Australian context. 7.7 Each federation has its own particular circumstances, which influence its political structure. Although these circumstances may sometimes make direct comparison difficult, they also provide an insight into how varying structures support the principles and virtues of federalism. Principles of federalismMutual respect for authoritative decision-making at each level7.8 Mutual respect may take the form of constitutional guarantees, with the allocation of certain responsibilities to Federal and State Governments contained within the constitution. It may also take the form of intergovernmental agreements that set out the responsibilities of each level of government in a particular policy field. This principle not only recognises the integrity of State Governments but also the appropriateness of Federal Government action where there is a national interest.Significant areas of autonomous decision making and administration at each level of government7.9 This recognises that the strength and legitimacy of Federal and State Governments lies in their ability to act decisively according to the needs and interests of their own communities.Matching legislative responsibility with fiscal capability7.10 In order to execute its functions effectively and efficiently, it is vital that each level of government have access to sufficient resources. This may be secured by the attribution of revenue-raising powers to each level of government or by fiscal transfers from Federal to State Governments.Acknowledgment of the importance of intergovernmental relations in maintaining a balanced federal system7.11 This recognises that there is more to a federal system than its basic constitutional structure. Intergovernmental relations facilitate the co-ordination of federal and state policies and can also provide an arena for State-to-State co-operation and co-ordination. It can allow for a degree of flexibility and responsiveness in the federal system that is unobtainable through constitutional provisions.Endnotes
1Federal-State Relations Committee, Australian Federalism: The Role of the States, Second Report on The Inquiry into Overlap and Duplication, Parliament of Victoria, Melbourne, 1998, Findings 1, 14. |
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