With Federal Labor confirming that if a Rudd Government is elected, during its first term it will consult with Councils over Constitutional recognition of Local Government, and Federal Minister Jim Lloyd also stating that in light of the events surrounding amalgamation of Queensland Councils, he is now willing to reconsider his view on Constitutional recognition as a means of strengthening the role of Local Government.
Given the various moves by the Howard Government into traditional State and Territory areas, such as health, education and Indigenous affairs – impending election aside – the centralism versus States’ rights argument is definitely back on the political agenda.
As former Federal MP and Labor Party President, Barry Jones, pointed out at the recent Western Australian Local Government Association conference, centralism has largely been a Labor platform, with the conservative parties more aligned with States’ rights. But with all the State Governments in Labor hands, a greater push for centralism has of late been emanating from the Australian Government.
Barry Jones outlined to delegates the steady decline of State powers, particularly via High Court decisions in favour of the Commonwealth, not the least being the famous tax case
in 1942.
He predicts the weakening of State powers will continue and this is likely to increase the power of Local Government. But he believes Local Government must express its needs in a more powerful and focused way than it has been doing to date.
He said, “Within communities it is you that people know best and will turn to, and this is demanding a higher level of leadership by Councils”.
Barry Jones then threw down the challenge to Local Government: “I hope for the nation’s sake that you are up to it”.
If bipartisan support for Constitutional recognition (a vital component for success at referenda) is more likely, what will this mean for Local Government?
Federal Minister Jim Lloyd suggests that if Constitutional recognition is achieved the States and Territories could walk away from Local Government, resulting in Councils being totally reliant on the Australian Government for their grants and government funding.
Therefore Constitutional recognition without access to a growth tax – namely Local Government having a fixed share of the tax cake – will see Councils continuing to be cap in hand to the one centralist government for finances as they endeavour to meet their growing responsibilities and a burgeoning infrastructure funding gap.
The Australian Local Government Association’s 3F campaign – Fair Funding; Fair Treatment and Formal Recognition – clearly puts the case that Constitutional recognition without fair funding and fair treatment will achieve very little.
