Blame Shifting & Demarcation Disputes Harming Business Capacity to Grow

Blame Shifting and Demarcation Disputes Between Governments Harming Illawarra's Capacity to Grow, says Business.

The Illawarra Business Chamber has joined with the NSW Business Chamber in calling for radical reforms to Federal-State relations saying the operation of the Federation had become �dysfunctional� with blame-shifting and demarcation disputes between the Federal and State Governments harming Australia�s capacity to grow and achieve.

The report compiled by NSW Business Chamber into Federal-State Relations entitled, Australian Business priorities 2007: Fixing the Federation, makes ten major recommendations for reform including holding a Constitutional Convention in 2008 and for Federal, State and Territory Parliaments to have simultaneous elections and fixed four year terms.

�Blame-shifting between all levels of government has become the third certainty of life � joining death and taxes�, said Mark Grimson, CEO of Illawarra Business Chamber.

�Illawarra businesses should be concerned that Australia�s strong economic performance is masking the fact that the operation of the Australian Federation is becoming dysfunctional.

�Major debates in areas such as taxation, infrastructure, health, education and workplace relations have become demarcation disputes between the Federal and State Governments.

Mr Grimson said 2008 marked only the third year since Federation that no Federal or State Elections are scheduled and provides a once in a lifetime opportunity to pursue real reform.

�The coming year provides a real opportunity to tackle some of the difficult issues facing Australia without the impending pressures of elections. That is why we are proposing that 2008 be recognised as the Year of the Federation and that a Constitutional Convention be held.

�We need an end to the unilateral Commonwealth incursions into State issues and also an end to State obstruction of Commonwealth goals.

Mr Grimson said the increasing trend of political parties of all persuasions is to use election campaigns as an opportunity for blame-shifting or to postpone critical policy decisions.

�In the Illawarrra region, major decisions such as the NSW Government�s privatisation program, infrastructure planning and much needed OH&S changes have all been put off until after the Federal election. At the same time, the Federal Government is making unilateral interventions into the policy domains of State Governments.

�Businesses in the Illawarra are concerned that a climate has developed where interactions between the Commonwealth and the States have become subservient to the politics of the day, or are being dealt with through a complex, haphazard and undisciplined distribution of cash that inspires little confidence in the integrity of the process�.

The major recommendations of Australian Business Priorities 2007: Fixing the Federation:

That 2008 be declared the �Year of the Federation� with a Constitutional Convention held to identify ways of improving the performance of the Federation.
Constitutional Convention to mark a formal end to unilateral Commonwealth incursions into State issues and an end to State obstruction of Commonwealth goals.
The Constitutional Convention to determine which layer of government is responsible for vocational education and training.
Fast-tracking of national consistency and standards for school education across Australia.
Federal, State and Territory Parliaments to all have fixed four year terms � and for elections to be held on the same day every four years.
Formal referral of workplace relations powers by the States to the Commonwealth.
Federal, State and Territory Governments to develop nationally consistent and sensible Occupational Health and Safety laws.
Productivity Commission to undertake an independent review of the GST distribution formula.
The appointment of a Federal Minister for Infrastructure who will work with the States to develop a National Infrastructure Plan.
The Federal, State and Territory Governments to develop an integrated policy framework and platform for climate change initiatives.

For more information contact Mark Grimson on 4229 4722 or 0409 155 240 download a copy of the full report

2007 Aust Business Priorities

1.117 MB