AiOO: CHECK AGAINST DELIVE~ YBROADCAST: 3HA-9 -May 1976
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PRIME MINISTER
FOR PRESS9 May 1976
ELECTORAL TALK
I want to talk with you today about the Government's
federalism reforms as they specifically apply to local
government.. The Liberal and National Country Parties believe in the basic
right of people to seek their own goals in life, with ΓΈ the
Government providing the legal framework and other conditions
that make this possible.
The Labor Party tried to take Australia rapidly down the road
to'. a centralist, tightly regulated, bur2aucratic
state, built on ever-rising taxes and a growing dominance
of government over people.
Our task is to effectively demonstrate that there is a
realistic alternative.
We can have a country where government decisions are made as
close as possible to the people affected. We can have imaginative
yet sound and responsible government at the grass roots.
Unfortunately local government, in Australia has been for too
long regarded as the poor third cousin of our three-tiered
system of government. It has not deserved this status. / 2
It was aginst this background that the Liberal National
Country Party Federal1 Government shaped an important part of
its federalism policy.
These policies the most far reaching reforms ever proposed
in the decentralisation of government power in Australia
have been acclaimed by State Premiers and at the highest levels
of local government.
Federalism is not just a structural concept. It is not
just about C(-istribution of taxpayers money. It is a cornerstone
of Liberal philosophy.
Let there be no doubt that I and my government regard federalism
as a guarantee of political and individual freedom..
By very nature, federalism will prevent the dangerous
concentration of power into the hands of a few. Federalism
is a new deal and a better deal for the people.
It is gratifying that our federalism reforms have received
strong support by both State and local government.
This week, the controlling body f or local government throughout
Australia the Australian Council of Local Government Associationscame
out and supported our initiatives.
In a comprehensive statement, the Council said:
" Local government is enthusiastic and receptive about the
Commonwealth Government's concept of federalisma; that is,
a philosophy of cooperative government which included the
interaction and operation of the three spheres of Federal,
State and local government." / 13
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The Council accepted the revenue sharing proposals;
applauded the proposal to set up an Advisory Council for
Inter-Governmental Relations and agreed with our proposals
to establish State Grants Commissions in those States that did
not have them.
Included in its statement, the Council had some questions about
specific parts of the reform. This included questions about
the actual level of assistance that will come to local government
in the next Budget.
As I outlined to the Parliament this week, the Grants Commission
is now involved in the complex process of looking at the actual
definition of local government. This is an important matter as
definitions vary from State to State. We are clearly anxious that
local municipalities are given fair and just consideration.
That is the reason for this examination.
The Commission is also examining the breakup of funds between each
State to be made available to loc. al governments.
I am ver much aware of the financial difficulties facing local.
government authorities. Although the implementation of the
revenue-sharing proposals must be looked at in the light of our
present economic situation, a firm decision has been taken that
local government will participate in the new tax-sharing arrangements,
from July 1 this year.
This assistance will be related to the yield of Commonwealth
personal incomte tax. The total level of assistance which local
government might expect to receive, under these new arrangements will
be announced as soon as possible.
Under our reforms local government will be better off. Like the
States local government-will have access to a guaranteed percentage
of income tax. Because income tax is a growth tax local government
will be in a position to respond to the new and growing demands made
on it.
Local government will be able to plan its programmes and services
knowing it has a guaranteed growth in income.
Meantime, a working party of officials from the State and the
Commonwealth has beenset up to work out what matters should
be taken into account when allocating funds within the States.
Thi.-, again is a complex and important consideration and great
care is being taken to make sure that all local municipalitie3
are fairly treated.
Within each State,; a certain proportion of -funds will be
made available to all local governments on a per capita basis
which could be weighted for other dissabilities such as area
and distance. The remaining part will be made available on a
needs basis by State Grant Commissions.
After the last successful Premier's Conference, all Premiers
agreed to establish these State Grants Commissions in those States'
thaL do not already have them.
We believe that each sphere of government should make decisions*
on matters appropriate to that sphere. Matters of proper concern
to more than one sphere should be decided through a process-of
genuine consultation and cooperation.
For the federalism reform to work to the benefit of all
Australians it is important that all State Grants Commissions
are established as soon as possible, so they can make their own
* investigations about specific local needs.
After years in the wilderness, local government in Australia now
has a chance to be treated and to operate as a highly
responsible element of the system of government in Australia.
We all have much to learn about the process of government. It is
quite certain, however, that local governments have much to
contribute to enhance our system of government.
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