PM Transcripts

PRIME MINISTER
FOR MEDIA 21 OCTOBER 1988
The Commonwealth has decided to take up the constructive
suggestion of the Premier of South Australia, John Bannon,
as a way of resolving a disagreement over the transfer of
the Emergency Relief Program to the States.
Emergency Relief is provided to people in immediate need for
ad hoc assistance. it is provided through voluntary
organisations with money supplied by both the Commonwealth
and the States.
Both the States and the Commonwealth had administrative
apparatus to support the program. In the interest of
removing administrative overlap the Commonwealth proposed to
transfer the program ' to the States at the last Premiers'
Conference with the continuing Commonwealth financial
support coming through general revenue assistance.
Several States objected on the grounds that Emergency Relief
is an income support program, and that they preferred
Commonwealth funds to be clearly identified.
Emergency relief programs have been run historically by the
States, whereas the Commonwealth has contributed to them
directly only recently. The involvement of two levels of
government in such programs leads to confusion in the minds
of potential recipients, and adds needlessly to the costs of
running welfare activities.
For these reasons, and in particular given the States,
continued representations to me to rationalise Commonwealth
administrative overlap with the States, it was sensible to
include Emergency Relief in the offer document for transfer
to the States at the Premiers' Conference.
Taking up Mr Bannon's suggestion that the program be
transferred by way of a specific purpose payment meets one-.
of the States' main concerns. The arrangement can commence
immediately, with funds allocated this financial year being
subject to future indexation, using the Consumer Price Index
as from 1989-90, so that real value is maintained.
Other than requiring that the money be used for payment to
non-government agencies for emergency relief, I would not
see the Commonwealth involved in program determination or
administration. It should be understood that the States
will maintain their effort in this area and that the above
represents the Commonwealth's financial limit. 2855