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AUSTRALIAN INTERGOVERNMENTAL
RELATIONS
URL: http://www.spatialgovernance.com/governance/government/610-3A.htm
© John S. Cook - Created on 24 March 2003
Last modified
05/04/11 11:01
Australian EST
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INTRODUCTION |
Federal Systems and
the Need for Federal State Relations
The nature of the division of powers between federal and state
legislatures and the multifarious nature of many issues
involving government mean that there is a potential for federal
and states requirements to conflict. Generally, the Constitution
allows a court to declare the law of a state invalid to the
extent that it conflicts with a law of the federal government.
However, the public display of litigation between governments
does not provide an example for ordinary citizens of how to
resolve disputation peacefully. In many instances this may
require governments of different political persuasions to
establish agreement where none existed previously.
Protocols for Inter-Governmental Relations
Australian Governments have developed protocols for dealing with
intergovernmental relations that now involve:
 | Heads of Government Meetings (COAG and the
Treaties Council) |
| Standing Ministerial Councils with specific
functions |
| Other Ministerial Councils meeting on an ad
hoc basis |
| Intergovernmental technical committees
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Details of these arrangements are set out in
Commonwealth-State
Ministerial Councils - A Compendium - a detailed document in
Rich Text Format comprising 107 pages. At p.13, the role of COAG
is
stated as follows:
| to increase cooperation among governments
in the national interest; |
| to facilitate cooperation among governments
on reforms to achieve an integrated, efficient national
economy and single national market; |
| to continue
structural reform of government and review of relationships
among governments consistent with the national interest; and
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| to consult on
major issues by agreement such as:
 | major whole-of-government issues
arising from Ministerial Council deliberations; and
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| major initiatives of one government
which impact on other governments. |
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Treaty-Making
Protocols
The Treaties Council operates as a Committee of COAG with
functions set out from p.14 of the
Compendium.
Treaty making is obviously a federal
matter but the effect of treaties can impact on some or all of
the States. More recently, Australia's treaty obligations
as a
member of an international community have required more extensive
regulation than can be achieved by a federal or a state
legislature acting alone. However, this creates a problem of how to
enter into community consultation on complex issues while, at
the same time, negotiations involving these issues take place
within international forums.
Ministerial Councils
Ministerial Councils aim to coordinate legislation and
administration across jurisdictional borders. They fall into two
main groups:
| Councils
comprising the Commonwealth and Australian States and
Territories, some involving Local Government representation,
some including New Zealand and some having observers from
South Pacific nations |
| Councils
comprising the Commonwealth and one or more Australian
States or Territories |
Involvement of New Zealand
A number of agreements recognise a special bond and mutual
interest between Australia and New Zealand. Fundamental to this
relationship have been:
| A free travel agreement announced on 15
March 1973 by the respective Australian and NZ Minsters
responsible for immigration matters |
| A Closer Economic Relations (CER) Trade
Agreement signed on 28 March 1983 |
NZ Government Ministers are also often
included in Ministerial Councils established under COAG
Protocols. |
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References:
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EXTERNAL TRADE AND FOREIGN
RELATIONS |
Australian External
Relations
External relations were important in the federation of the
former British colonies into a Commonwealth and States. Concerns
and xenophobia made defence, trade and migration policies of
particular importance. Early in its history as a federation,
Australia needed to enter into a a variety of mutual arrangements
involving:
| people and their ability to visit and stay
temporarily in, or emigrate from other countries
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| representation of Australian interests
overseas through consulates and
trade commissioners |
| transport - through conventions for passage
of shipping and aircraft |
| communications - through conventions for
postage and telecommunications |
| intellectual property - to provide
protection beyond Australia for various forms of
intellectual property such as copyright, patents and trade
marks |
Defence
Australia's traditional reliance on Britain reflected in
readiness to commit forces to conflicts in which the British
Government had become involved. Prior to Federation, Australian
colonies had committed troops to the Boer War and other
conflicts. After Federation, Australia made major commitments to
the allied cause in two World Wars. However, the withdrawal of
Australian troops in North Africa, the fall of
Singapore and Australia's looking to the USA for an alliance to
meet the significant threat posed by war in the Pacific were historical turning points
in how Australia saw its place in the World.
Australia signed the ANZUS treaty with the United States
and New Zealand in Canberra on 1 September 1951. At that time,
Australian service personnel were part of a United Nations force
in Korea. However, since 1947, Australian personnel have played
a significant role - mainly under auspices of the United Nations
- in peacemaking and peacekeeping efforts in many parts of the
world. |
Terms of Trade
Where competition exists for sale or purchase of particular
commodities, bargaining power as a buyer or seller may extend
beyond price and quality of traded commodities. Other issues
often include:
| the extent of tariff protection or subsidy
that apply to commodities |
| human rights of people involved in
producing the commodities |
| effects on the natural environment in
various forms of production |
Factors influencing the bargaining power of
trading nations include:
| the nature and demand for particular
commodities - such as oil |
| the size of the national economy and its
degree of self-sufficiency across a range of commodities |
| the extent to which countries in a region
may form regional trading blocs |
| a reputation for reliability in supplying and
making payments for commodities |
Complications in Trading Issues
Trade issues often go beyond concerns about tariffs and
subsidies. They can easily merge with human rights and
environmental issues in considering fairness of competition.
Disagreements can emerge form perceptions regarding things such
as:
| unfairness in conditions of employment and
human rights of workers |
| cruelty to animals in methods of husbandry,
transportation and slaughter |
| concerns about endangered species or harm to
the environment |
| quarantine standards applying to exports and
imports of primary production |
| protection of intellectual property |
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References:
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AUSTRALIAN FEDERAL STATE
FINANCIAL RELATIONS |
Background
Tensions between Commonwealth and State governments over
taxation have been part of Australia's federal system of
government since its inception. The priority attaching to the
Commonwealth need for taxes became obvious in the total war
effort of World War 2 from 1939-1945. In 1942, the States ceded
their rights to raise income taxes to the Commonwealth. However,
the States were unable under the Australian Constitution to levy
excises or customs duties nor tax Commonwealth property. The
practice grew of the Commonwealth collecting taxation and making
disbursements to the States.
A New Tax System (ANTS)
After consultation with Commonwealth, State and Territory heads
of government, and the holding of a Special Premier's Conference
on 13 November 1998, these heads of government signed an Intergovernmental
Agreement on the Reform of the Commonwealth-State Financial
Relations on 9 April 1999. This led to enactment of
A New Tax System (Commonwealth-State Financial Arrangements Act
1999 (Cwlth) that referred to the Intergovernmental
Agreement at
s.10 and reproduced its text as
Schedule 2.
Reasons given for reform included the
States having limited taxing powers and the means for raising
taxes were inefficient and inequitable.
Australia adopted a Goods and Services Tax (GST)
from 1 July 2000 following introduction of
A New
Business Tax System (Capital Gains Tax) Act 1999. The
Commonwealth Treasurer chairs a Ministerial Council for
Commonwealth-State Financial Relations and Loan Council. |
Ministerial
Council for Commonwealth-State Financial Relations
Part 4 of the Intergovernmental
Agreement on the Reform of the Commonwealth-State Financial
Relations called for establishment from 1 July 1999 of a
Ministerial Council comprising the Treasurer of the Commonwealth
and the Treasurers of the States and Territories (or designated
representatives). One of the more important tasks of the Council
is to oversee the implementation and
operation of the Intergovernmental Agreement. The inaugural
Ministerial Council meeting on 17 March 2000 considered expected
revenue payments to the States in 2000-01, as well as a range of
tax reform-related issues. Budget Papers for 2000-2001 at
Paper No. 3 - Federal Financial Relations - set out the basis
for |
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References:
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AUSTRALIAN MICROECONOMIC
REFORM |
Australia as a
Member of the World Trade Organisation
Australia's involvement as a member of the
World
Trade Organisation places obligations
on the national government to achieve compliance and ensure
fair-trading. The Australian Constitution limits the capacity of
the Commonwealth to deal with the regulation of commerce without
cooperation from the States. The principal protocol for reaching
Commonwealth/State agreements is through the Council of
Australian Governments (COAG).The Prime
Minister retains an overview of national economic policies through
an Economic Division within his own department. He also exercises
responsibility for Commonwealth-State relations by providing the
Secretariat for the Council of Australian Government within his
Department |
Competition Policy
In October 1992, COAG established an Independent Committee of
Inquiry into National Competition Policy. This Committee handed
its Report, known as the Hilmer Report, to the heads of the nine
Australian Governments on 24 August 1993. COAG adopted the
Hilmer recommendations in principle in February 1994. |
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References:
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ENVIRONMENTAL POLICIES |
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Rio Declaration and Agenda 21
Australia's environmental policies did not begin in 1992
with the the
Rio
Declaration on Environment and Development and Agenda
21. However, much of the current direction and focus can
be placed in the context of these agreements.
National Environment Protection and
Heritage Council
COAG agreed
to establish the National Environment Protection Council (NEPC) on 8 June 2001. The EPHC incorporates the
National Environment Protection Council (NEPC), the
environmental protection components of the Australian New
Zealand Environment and Conservation Council (ANZECC) and the
Heritage Ministers' Meeting. The NEPC
owes its origins to the Special Premiers' Conference held in
October 1990. This conference agreed to develop an
Intergovernmental Agreement on the Environment (IGAE), which
came into effect on 1 May 1992. NEPC remains
as a statutory body with
law-making powers established under the National
Environment Protection Council Act 1994 (Cwlth),
and corresponding legislation in the other jurisdictions
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Natural Resource Management
Ministerial Council
Membership of the Natural Resource Management
Ministerial Council (NRMMC) consists of the Australian Federal,
State/Territory and New Zealand Ministers responsible for
environment, water, and natural resources. The Council deals
with conservation and sustainable use of Australia's natural
resources.
Primary Industries Ministerial
Council
The Primary Industries Ministerial
Council meets twice a year with meetings hosted by members
in an agreed rotation. Meetings are held back-to-back with
those of the Natural Resources Management Council and the
Environment Protection and Heritage Council.
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