F76S/ 92
PRIMESRMINISTEFOR
PRESS MAY 19, 1976
TEXT OF ADDRESS GIVEN BY SENATOR CARRICK ON BEHALF OF TH
PRIME MINISTER. AT THE MUNICIPAL ADMINISTRATION SEMINAR
I am pleased to be able to open the fourth National Local
Government Seminar.
As you will know, the Government is committed to the most
far-reaching reform of inter-governmental relations since
Federation. The theme of this Seminar " Local Government the changing
scene" therefore seems most appropriate, and I welcome the
opportunity to discuss with you the implications of the Federalism.
policy for Local Government.
The Government's Federalism Policy will result in a new scene
for Local Government.
It will ensure that the voices of individuals and community
groups. are heard, and that meaningful participation in the
democratic process is enhanced.
Local Government has existed in Australia as long as most of
the States. The first steps in the establishment of Local
Government in Australia were taken in the late 1830' s.
The enthusiasm for Local Government in these early years is
shown by this statement from a document of the period:
" Local Government and democracy are essentially intertwined, and
it is difficult to see how the one can survive without the
States, where national democracies are not
supported by the practice of Local Self-Government, will not
develop that wide and solid political capacity in their citizens
which is the chief bulwark against autocracy."
This viewpoint expresses the rationale behind our moves to give
Local Government more control over their own decision-making
and finances.
while the previous Labor Government followed a centralist
philosophy, our Government is committed to a policy where
Government decisions are made as close as possible to the people
they affect.
The previous Government believed that the national Government
must be directly involved in local affairs, even to the extent
of usurping many local government responsibilities. They believed
that all wisdom and experience resided in Canberra. ./ 2
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They introduced legislation to express this philosophy.
The Commonwealth Grants Commission Act of 1933 was. rplce
by the Grants Commission Act of 1973.
To implement this legislation, States were divided into
artificial regions formed by groupings of local authorities.
Applications for assistance were only considered from local
governing organisations approved by the Minister for Urban
arid Regional Development.
The regional organisazion was a forced extension of local
government. Rather than giving proper life to local government, regional
organisatiens formed a fourth level of Government. Regional
organisations did not include all local government. Those that
objected to losing their individual identity and refused to
be grouped into a region, missed out in the financial lottery.
The grants given on the recommendation of the Grants Commission,
were for topping-up purposes and were given to reduce inequalities.
By virtue of the very nature of the grant, however, not every
council received money. Some councils had to be used as the
measuring stick against which the others were to be compared.
The regional approach generally failed to take into account the
fact that each council faced different problems.
The kinds of local authorities that wore grouped into each region
were generally quite different with respect to the particular
problems that they faced as local authorities.
Our approach in these matters is quite different.
The present Commonwealth Government is the first since Federation
to be unequivocally committed to an accurate assessment of the
needs and responsibilities of all levels of Government.
The Government's Federalism Policy will contribute to a new
structure of Federal-State-Local Government relations.
Local Government is of growing significance in the local
community. It has " grass-roots' contacts. It must have the
a bility to Lcespond to the massive difficulties which inflation,
limited revenues, and expanding demands are imposing on it.
Today Local Government covers every aspect of the life of the
individual and family, and affects economic growth and the
quality of life for the community.
Local Government has the potential to improve the quality of
life and services provided for local communities.
Our Federalism Policy will make major reforms in the finances
and functions of local government. It will make for a new
partnership between the Federal and State and Local Government
spheres.
Local Government shall no longer be a poor relation. / 13
At the basis of the new Federalism Policy is the principle
of tax sharing.
The Government proposes to earmark a fixed percentage of
personal income tax for distribution through the states to
Local Government.
Taxpayers will know what this percentage will be.
The money is intended for two distinct purposes.
PArt of each State's total grant will be for distribution
between all authorities in the state. It will be essentially
on a per capita basis,. but there could be a weightinig involved
related to area).
The second component will be an equalisation or " topping-up"
grant to take account of any special needs of particular
authorities.
Funds to be distributed on the equalisation or needs basis
will be allocated by State Grants Commissions.
We will not dictate to the States the precise machinery or
manner by which they will handle the distribution of these
funds.
We will make available to the States the qualitative material
on Local Government finance which the Commonwealth Grants
Commission has assembled in the course of its enquiries, in
order to assist them.
The April Premiers' Conference made a firm decision that Local
Government would participate in the new tax sharing arrangements
as from 1976/ 77.
FYurther, it was agreed to establish State Grants Commissions
in those States which do not already have such a Commission.
In line with this policy the Commonwealth Grants Commission
has been asked to advise on certain aspects of Local Government
finance.
The Commission will not report on amounts of assistance for
individual authorities.
It will advise the Commonwealth Government on the appropriate
d~ istribution of funds between States of assistance to be
provided to Local Government in 1976/ 77.
A working party of officials from the States and the Commonwealth
has been set up to work out what matters should be taken into
account in allocating funds within the States.
On Thursday the Treasurer will be giving an indication of the
assistance which Local Government might expect to receive under
the new arrangements in 1976/ 77
Decisions on the detailed allocation of Local Government Grants
will no longer be made in Canberra, but by each State in
close consultation with Local Government itself.
We wish to see existing Local Government facilities and
capabilities utlised in place of the present proliferation
and overlapping of authorities and functions.
The reforms we are proposing to the federal system will establish
the framework for a far more efficient approach to problems
affecting State and local communities.
The great issues of concern; social welfare, education, h ealth,
housing, urban development, can only be handled adequately
through a Governmental framework in which each sphere of
Government considers the problems appropriate to it.
Efficiency and effectiveness are both harmed if . the central
Government presumes to decide questions on which awareness,
information and expert-ise are lorated at-local.
and state levels.
Such unjustified presumption on the part of the Federal
Government can only lead to poorly conceived programmes
and to harmful conflict between the different spheres of
Government. I
If we are to achieve the best consideration of the problems
which concern us all, we must * rest * cture our forms and
institutions of Government and our attitudes to achieve
partnership and co-operation, rather than domination by a
few people in Canberra.
The goal of improving relations between the spheres of Government
will be further advanced by the establishment of the Advisory
Council for Inter-Government Relations.
Local Government will be looked to for an important contribution
to the work of the Council.
The Council is seen by the Government as a vital institution of
co-operation within the various forms of Government.
It will be an independent body of major status with wide ranging
advisory and investigatory powers.
The Advisory Council for Inter-Governmental Relations will examine
i 4n depth , tht:: problems which emerge between the various branches
of. Government and will consider the definition and rationalisation
of functions.
Local Government will be repre ' sented and will through their
Premiers be able to have matters discussed at the Premiers'
Conference for reference to the Council for examination and
report. Progress towards the establishment of the Council is advancing
satisfactorily.
.1
At the April Premiers' Conference the charter for the Council
was agreed upon.
All Premier's have already been asked to submit nominations
for citizen members of the Council.
The Commonwealth Government will introduce the appropriate
legislation to establish the Council during the current
parliamentary session.
As the Council develops I believe its influence will do much to
enhance the status of Local Government.
Thc Council will provide an effective vehicle to encourage
public debate on the practical resolution of local problems.
As a consequence of the Government's Federalism Policy I see
Local Government being assured of its continuing role.
We will not attempt to force on local authorities artificial
regions or changes of boundaries.
Local Government must be given the opportunity and assured
resources to do its job, free from the constrictions forced
upon it by the previous government.
The Commonwealth's proposals for a new system of financial
assistance for Local Government were welcomed by the Premiers
and warmly supported by the Australian Council of Local
Government Associations.
One of the important areas where Local Government can and
does play a role is in the delivery of welfare services.
This is a role which merits further exploration.
Welfare services provided at the local level are responsive to
the users' needs and wishes.
Local Government has the capacity to mesh together voluntary
and statutory welfare services and link them to other Local
Government planning funciton.
This is in many ways a natural Local Government function,
because of the proximity of Local Government to the people and
its unequalled knowledge of local conditions and problems.
Local Government should be fully aware of its special position
and the considerable potential it has for enhancing citizen
participation in decision-making.
The Government's proposals on Local Government follow what I
see as one of the main objectives of Government: the creation
of a society and an environment in which individuals may best
fulfil themselves. / 6
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If this is to be achieved individuals must be free to
participate fully in Government and the forms of Government
must be decentralised to permit maximum response and effective
involvement.
Clea"-ly the scene for Local Government in Australi. a is changing.
The Labor Government tried to take Australia rapidly down the
road to a centralist, tightly regulated bureaucratic state,
built on ever-rising taxes and a growing dominaiice of Government
over people.
The task of the present Government is to effectively demonstrate
that there is a realistic alternative.
We believe our Federalism policy will re-establish the integrity
of the federal structure.
Our proposals are designed to bring a greater degree of
responsibility and autonomy to both State and Local Government
where decisions that affect people in their own areas can be
made by the people who know most about them and live close to
them. Local Government now has a chance to assert itself, to display
its capabilities and its readiness to adjust and progress.
Much will depend on Local Government in helping Australia
meet the challenges that the 1980' s and beyond will brinq.
I have much pleasure in declaring this Conference open.