MACQUARIENETWORK WEEKLY BROADCAST
BY THE PRIME MINISTER, THE RT. HON. WILLIAM McMAHON
CH, MP 28 JUNE 1972
COM1MONWEALTH/ STATE RELATIONS
Good Evening You will remember that last week we had a meeting
in Canberra between the State Premiers and the Commonweath. This
was a very important meeting because it was the first step in setting
the course for the Commonwealth and the State Budgets for the new
financial year which begins on Saturday.
It was my fourth meeting with the Premiers as Prime
Minister. Once again, as in other meetings, the discussions were
really good. Three Libezral/ Country Party and three Labor Premiers
sat around the table with the Commonwealth. And we got down to
business in a spirit of' goodwill and co-operation.
Frankly, I don't think it could be much better.
Certainly it's a lot better than it has ever been before.
As you know,: the Commonwealth collects most of the
taxes you pay, . and a sizeable part is paid to the States to allow
them to finance their various activities.
The balance is used by the Commonwealth itselZ for
national needs like Defece and Social Services and to meet the
cost of running the nationAl Government.
One of the Commonwealth's objectives was to do
hat we could to make sure the States did not have to substantially
ncrease taxation. And I t4ink we gave a great deal of help.
his is what Sir Robert Aski-of New South Wales said:-
" I hope to avoid any increase in taxation altogether." / 2
-2
And this is what the VictoriaiPrenier, Sir Henry Bolte, said:
" I think the most important thing is that there will not
be any increase in State taxation."
The Premiers' Conference and the Loan Council decide
the level of financial assistance g~ rants to the States and the
borrowing programmes for works and housing.
Incidentally, the Commonwealth has for many years
underwritten the State Government works and housing programmes to
thae extent that borrowings approved cannot be raised on the market.
Now you hear a lot of talk about haggling and about
the States coming " cap-in-hand" to the Commonwealt-h. -This hasn't
been the case in my Administration.
We have given new taxing powers to the States by
handing over the pay-roll tax t-o them, and the Premiers'now, tell
us their problems and give us an assessment of their needs before
we meet. So we are all pretty well informed when we sit down
together. Now let me sum up briefly the main results of the
Conference. First the Comimonwealth will provide the States in
1972/ 73 with $ 128 million more in revenue grants than they received
before. This will take the t~ otal amount the States will get from
us in the new financial year to over sixteen hundred million dollars.
In addition, the Commonwea'lth will provide as grants
nearly $ 250 million of the States' programme for works and housing
which we agreed will be $ 982 million and we guarantee that they
will receive the remaining part of the prograimme if it cannot be
borrowed. These are pretty big sums. In total the State
Governments and their authorities will have available from
Commonwealth sources and from borrowing approved by the Loan
Council something over $ 3,000 million in the next year. That.,
I believe, spells progress.
I mention two other matters.
We are still keeping a very watchful eye on
unemployment. As you know, we have already acted promptly to get
the numbers down. At the Premiers' Conference we decided to do
more. The Commonwealth agreed to increase the money to be
spent up to the end of 1972 from four and a half million dollars a
month to six mil~ lion dollars a month for the relief of nonmetropolitan
unemployment. The States will, of course, decide
for themselves in what non-metropolitan areas and in what way
they will spend this money.
S-3-
They, like us, are pledged to a policy of full
employment.. S. We also talked about urban problems..
The Commonwealth shares the concern of the States
Sat the plight of some of our cities andtheir services. How can we
ease the traffic snarls-and the congestion in our cities.. and the
sprawl., that is taking place in our suburbs?
Under the Australian Constitution, of. course, these
are basically problems for-State Governments, as only they have
the power to act within their own borders. But the Commonwealth
takes . a deep interest in all this, because, after-all,--we are
one people, living in one continent.
The increased funds I have been talking about give
the States the opportunity to tackle the problems directly in the
way they know best. We have been-doing-mre -tban--iny peopl. e eali. I
for housing--and for-roads, for example.
So I repeat, the overall result of the Premiers'
Conference was good. It will do much to help our growth and
development, and promote more of the things you need to improve
the quality of our national life.
Goodnight.