FOR PRESS 5 February 1976
PREMIERS' CONFERENCE
This Premiers' Conference established the basis for a completely
new approach to federalism.
Economic Situation
Following a comprehensive report by the Commonwealth Treasurer on the
economic situation there w-as a full and frank discussion of the present
difficult economic problems with emphasis on the vital importance of
overcoming inflation, restoring confidence and achieving sound and
sustained recovery in activity and employment.
New Tax Sharing Arrangements
on the question of income tax sharing the States gave their preliminary
reactions to the general principles which the Commonwealth had suggested
might be followed and the discussion clarified the issues which are involved
in a most useful way. The supplementary statement issued at the cor~ tencement
of the Conference briefly outlined the proposed general principles.*
All States have agreed to participate in work to develop the matter further.
The States will set down in more detail their views on the matters raised
and tc-, fz . iiirata . te cxor-idezati& ov of the proposed tarrangements
at a subsequent Conference, a working group of Commonwealth and State Treasury
off icers will be established to examine certain technical issues.
Assistance for Local Government
The Commonwealth's proposals for a new system of assistance for local
government to commence in 1976-77 were welcomed by the.-Premiers.
In essence, under the new system local government wgill have access
to funds on a continuing and guaranteed basis.
The funds are intended for two purposes a per capita grant to all
local government bodies, and an equalisation or topping up grant.
The Premiers have agreed to write setting out any comments they might
have on questions of detai-l which were raised.
They will be consulting local government in the process of formulating
their comments.
The Grants Commission will continue its current * inquiries into certain
aspects of local government finances. The Commission will advise
on the distribution of funds as between the States for local government
in i976-77.
Under the proposed new arrangements. it will not now be recommending
on amounts of assistance for individual councils, but the information
it is assembling will be used in the future arrangements.
The amount of assistanco to be provided to icoal government in 1976-77
under the proposed new arrangements will be determined by the Commonwealth
as early as practicable in the light of general budgetary considerations.
Legislation to amend the Grants Commission Act to accord with these
ar. Langaments will be introduced in the coming Parliamentary session.
Road Grants
It was agreed that road grants of S64 million provided in the Commonwealth's
1975-76 budget as a supplement to the amount payable under existing
legislation will be paid by the Commonwealth to the States, but that
million of this amount will be held over over for payment in
1976-77.
The Commonwealth expressed the strong view that a high proportion of
these additional grants should be directed to local governments
which have been hard hit by the cut back in the road programme inherited
from the previous government.
Wages The Premiers agreed there would be advantages in regular meetings of
Commonwealth and State Wage Pixing Tribunals which werecognised
will be a matter for them to determine. They also agreed that the
Public Service Boards-of the Commonwealth and State Governments
could maintain regular coatact.
Council for inter-governmental Relations
Senator Carrick-as Minister Assisting me on Federal Affairs will
have further discussions with State Ministers on the early establishment
on a new advisory body the Council for Inter-governmental Relations.
National Energy Council
As a result of the initiative of the. Victorian Premier a new forum,
the National Energy Council, will be established to discuss major energy
issues of national significance. It will consist of Federal and State
Ministers.