HEADS OF GOVERNMENT MEETING
CNBFRRA 11 MAY 1992
COMUIQUEz
INTRODUCTION The Prime Minister, Premiers and Chief Ministers and the
President of the Australian Local Government Association
held wide ranging discussions in Canberra today on
national issues of mutual concern. These issues included
Commonwealth-State financial arrangements and a range of
measures for improving national economic and structural
efficiency, including measures in the areas of road and
rail transport, the electricity industry, mutual
recognition of regulation and vocational education and
training.
COMMONWEALTH-STATE FINANCIAL ARRANGEMENTS
Heads of Government discussed the immediate and
medium-term outlook for their respective budgets and
intergovernmental financial relations.
In discussing the paper prepared by the States on
Commonwealth-State financial relaticns, the Commonwealth
acknowledged that the States needed to be adequately
resourced and that the predictability, flexibility and
growth of State funding were agreed objectives. The
States will decide later this week whether the June
Premiers' Conference should consider financial
arrangements for 1992-93 only or also for a longer
period. The Conference agreed that a Committee of Commonwealth,
State and Territory Treasury officials would prepare a
report on budgetary prospects and issues for
consideration at the forthcoming financial Premiers'
Conference. It would take account of both cyclical and
structural factors at both the Commonwealth and State
level in the context of a national budgetary strategy for
all governments. This report could provide a basis for
considering general purpose funding for the States in
1992-93 and, if necessary, longer term financial
arrangements. If the June Premiers' Conference decides only on 1992-93
funding arrangements, a report on longer-term
arrangements will be prepared by early 1993.
MEETINGS OF HEADS OF GOVERNMENT
Leaders and representatives agreed to establish a
" Council of Australian Governments" as a permanent body
for on-going consultation between the Prime Minister,
Premiers, Chief Ministers and the President of the
Australian Local Government Association.
Leaders and representatives have agreed that there will
be a meeting of the " Council of Australian Governments"
at least once each year, in addition to the financial
Premiers' Conference, and that the Prime Minister will
chair the meetings.
The role of the " Council of Australian Governments" is:
increasing co-operation among governments in the
national interest;
co-operation among goverrnents on reforms to achieve
an integrated, efficient national economy and single
national market;
continuing structural reform of government and
review of relationships among governments consistent
with the national interest; and
consultation on other major issues by agreement such
as: international treaties which affect the States
and Territories and which have not been
resolved through the agreed processes;
major initiatives of one government which
impact on other governments;
major whole-of -government issues arising from
Ministerial Council deliberations.
The venue for meetings of the Council will rotate between
the States and Territories and there will be joint
Commonwealth and State/ Territory involvement in providing
secretariat arrangements.
Leaders and representatives agreed that the first meeting
of the Council should consider broad protocols for the
operation of Ministerial Councils. Heads of Government
noted the significant cooperation and consultation
between Governments which now occurs through Ministerial
Councils of Commonwealth and State Ministers. However,
there are now more than 40 such Councils, many meeting
several times a year.
MUTUAL RECOGNITION
The Heads of Government of the Commonwealth, States and
Territories signed a final Agreement to introduce
legislation to eliminate regulatory impediments to a
national market in goods and services. It is expected to
greatly enhance the international competitiveness of the
Australian economy and is recognised by Heads of
Government as a vital initiative in the achievement of
microeconomic reform.
The Agreement provides for all jurisdictions to enact
legislation so that goods that can be sold lawfully in
one State may be sold freely in any other State or
Territory. The legislation will not apply to certain
products, such as firearms, prohibited and offensive
weapons and pornography.
Similarly, with occupations, if a person is registered to
carry out an occupation in-one State or Territory he or
she will be entitled to be registered to undertake the
equivalent occupation in any other State or Territory.
The States and Territories agreed that they will request
and empower the Commonwealth to pass a single Act which
will apply equally throughout Australia and will
automatically override any State or Territory laws or
regulations which are inconsistent with the principles of
mutual recognition. The Commonwealth will be a full
Party to the Agreement.
The Agreement also provides a mechanism for achieving
negotiated uniform national standards, where necessary in
the interests of public health or safety or environmental
protection. States and Territories reaffirmed their
agreement to be bound by the decisions of two thirds or
more of Commonwealth, State and Territory Ministers
voting within Ministerial Councils to develop a national
standard when the need for such a standard becomes
evident as a-result of the operation of mutual
recognition. The Commonwealth has agreed to be bound by
recommendations of the Commonwealth-State Consumer
Affairs Product Safety Advisory Committee, approved by
Commonwealth, State and Territory Ministers, with respect
to standards for goods under the Trade Practices Act.
Heads of Government agreed on a revised timetable for
implementation of mutual recognition. It is proposed
that States and Territories enact their necessary
legislation by 31 October 1992; and that the Commonwealth
legislation be enacted by 1 January 1993, with
proclamation by 1 March 1993.
Heads of Government noted a report on progress in the
development of national competency standards for
professions and occupations. They expect that where
these are available, national competency standards will
do much to facilitate the smooth operation of mutual
recognition in respect of the occupations. They also
noted work done on the development of uniform standards
in relation to occupational health and safety and
dangerous goods. They reaffirmed that a national
solution to the treatment of partially regulated
occupations is a matter of high priority.
Heads of Government also endorsed the other
recommendations contained in the Report of the
Commonwealth-State Committee on Regulatory Reform.
ROAD TRANSPORT
Leaders and representatives noted the Commonwealth's
decision to provide an additional S25 million in 1991-92,
$ 437.5 million in 1992-93 and $ 140 million in 1993-94 for
augmenting and rehabilitating the National Highway
System, accelerating selected National Arterial projects
and expanding the Black Spots program. They also noted
the positive employment effects of this expenditure in
the period up to 1993-94.
Leaders and representatives agreed to the role and
functions of the National Road Transport Commission. An
Agreement has been signed by the Commonwealth, New South
Wales, Victoria and South Australia to this end.
Queensland indicated its intention to sign.
The Commission was established after the July 1991 Heads
of Government meeting to develop national road transport
legislation and regulations and to recommend on charges
to apply no later than 1 January 1993 for vehicles over
tonnes. It will now also be responsible for
developing regulations for all other road users.
In addition, the Commission is to assemble and publish
comparative information on the funding and management of
roads, performance indicators for the road system and the
efficiency and effectiveness of road authorities.
Leaders and representatives agreed that it was important
to delineate clearly Commonwealth and State road
responsibilities. The Prime Minister indicated that he
would shortly be advising the States of the Commonwealth
position on the National Highway System.
It was confirmed that $ 350 million of the Commonwealth
roads program would be untied. The Prime Minister
indicated that he would be writing to other Heads of
Government soon on an appropriate basis for this
distribution, including continuing the distribution
currently applying to the road funding being untied, with
a view to settling the matter before the June Premiers'
Conference. RAIL REFORM
The Commonwealth's readiness to provide $ 454 million over
the next two years to complement the National Rail
Corporation's 10-year $ 1.7 billion investment program was
noted. Leaders and representatives agreed that further rail
reform is required if the significant potential economic
gains are to be realised.
They noted that a number of the reforms were consistent
with measures already adopted by the States, but that
there was still considerable scope for increasing the
efficiency of the rail sector.
Acknowledging this and the importance of early reform,
the New South Wales, Victorian, Queensland, and Western
Australian Premiers agreed to continue to pursue and
accelerate reform of their rail systems over the next
three years.
ELECTRICITY GENERATION, TRANSMISSION AND DISTRIBUTION
It was agreed to develop an interstate transmission
network across the eastern States and that the National
Grid Management Council would report on the precise
nature and operating guidelines of the structure by the
end of 1992. To achieve this, Heads of Government agreed
to the principle of separate generation and transmission
elements in the electricity sector.
Western Australia, while not part of a national grid,
supports the above. South Australia wishes to look
further at the implications for its system. Tasmania's
participation in a national grid will be dependent on the
development of a Basslink proposal.
Heads of Government agreed to finalise the draft national
grid protocol prepared by the National Grid Management
Council via correspondence by the end of June.
VOCATIONAL EDUCATION AND TRAINING
Heads of Government agreed on the necessity of achieving
a major increase in the level of vocational education and
training opportunities across Australia, consistent with
the national participation targets arising from the
recent report of the Finn Committee.
In line with this objective, Heads of Government resolved
that: governmental responsibilities for the funding and
resourcing of vocational education and training
should be settled as a matter of urgency;
there was an urgent need also to advance the agreed
agenda of national training reform, including
consideration of the proposals for reform of entrylevel
training flowing from the recent report of the
Employment and Skills Formation Council ( Carmichael
Report); governments should work further to clarify issues
for the June Premiers' Conference on funding and
administrative arrangements under the Commonwealth
model and the National Partnership model for
vocational education and training, with particular
reference to:
the detailed financial implications;
responsibility for decision making; and
the relationship between proposals for
government schools and TAFE and training.
Heads of Government agreed that the issue of youth
employment and training is. one of national priority and
will be further progressed at the June meeting.
ABORIGINAL AFFAIRS
Heads of Government endorsed the document " Achieving
Greater Coordination of Aboriginal and Torres Strait
Islander Programs and Services". This establishes a
framework of principles and a plan of action for improved
intergovernmental relations in Aboriginal affairs.
Heads of Government recognised the role of ATSIC, but
noted that its creation had introduced complexities into
the relationship between governments. These would be
addressed in the period ahead, in particular the
operation of section 18 of the ATSIC Act in relation to
grants to States and Territories.
The great majority of the 339 recommendations of the
Royal Commission into Aboriginal Deaths in Custody had
been accepted by governments. Heads of Government were
committed to continuing to address issues of Aboriginal
disadvantage. The Prime Minister reiterated the
Commonwealth's commitment to announce an additional
package of measures by mid-year and Premiers and Chief
Ministers indicated that they would continue to give
Aboriginal needs high priority in their 1992-93 budgets.
ENVIRONMENT Intergovernmental Agreement on the Environment
Leaders and representatives noted that the Agreement has
now been signed by all parties and affirmed their
commitment to co-operating on its implementation. It
provides a framework for co-operation in this area to
achieve better environment protection and greater
certainty of government and business decision making.
E~ fl/ nrPenhouqA
Leaders and representatives noted progress on the
development of national strategies on Ecologically
Sustainable Development ( ESD) and Greenhouse. In the
light of the range and complexity of issues involved and
in order to facilitate effective public consultation,
leaders and representatives agreed that the draft
7
strategies should be released by the end of June as
officials' discussion papers. They further agreed that
officials should bring forward proposals for the
definitive strategies by the end of October with a view
to agreement being reached in time for the release of the
strategies by the end of 1992.
Leaders and representatives emphasised the importance of
linkages between the ESD process and other relevant
Commonwealth environmental initiatives and activities.